NEW YORK (TheStreet) -- General Motors Co. (GM) believes that India is an emerging market that will overtake Japan as the world's third largest car market in 10 years. As a result, the company plans to grab a 5% market share in the country which is expected to see sales of 8 million vehicles annually by 2025.
GM has had a presence in India for the past 18 years, though it is losing money there, according to Reuters. Rising labor costs in South Korea, which produces about a fifth of the company's output of vehicles, could also contribute to the auto company moving the hub of its Asian operations to India.
The company hopes to sell at least 400,000 vehicles in India by 2025, a 600% increase from the 57,600 vehicles the company sold in the country last year. GM already has plans to launch two new models models in the country over the next 12 months, the Trailblazer SUV and the multi-purpose van, Spin.
GM shares are up 0.34% to $35.54 in early market trading today.
TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, impressive record of earnings per share growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."