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With the news that auto sales at General Motors (GM) plunged by 11 percent and they also are cutting back production by 11 percent, it reveals the weakness in the overall industry, but particularly at GM.

One of the steps the company is working on to grow sales is an increasing presence in India.

Reports say General Motors Chairman and CEO, Rick Wagoner, will use India as a manufacturing export base for the company concerning global sales. 

Sometime in 2008 Wagoneer will visit India for the opening of its new manufacturing plant at Talegaon in Maharashtra. 

This looks like it's just the beginning for General Motors' plans for India, as they're also building a car design studio, which will be only the 11th they have worldwide.

Another step the auto giant is taking in India is to build an engine and transmission factory in the county, which will probably be built close to the new plant in Talegaon. It will serve both the global market as well as domestic market of India.

The company also announced it will partake in joint research with IIT-Kharagpur in regard to controls, software and electronics. GM Research and Development Executive Director, Dr Alan Taub, said a major reason is “Indian researchers are among the best anywhere in the world.”

This isn't the first time General Motors has done this, as they have between 40 - 50 similar joint ventures with Indian research and IT companies.

In a further show of commitment, GM is also helping to build up a base for workers in the industry by helping build up new training programs connected to IIT. 

I like this series of moves by General Motors, because it shows while they are going through some pain at this time, they're looking at some long-term solutions that could make a big difference for everyone with a vested interest in the company.

India is much more stable than China, and also more predictable. Their rapidly growing middle class makes them a prime target for auto companies and domestic sales. In 2006 GM sold about 36,000 vehicles in the domestic Indian market, and are looking to double it this year.

India is definitely an important part of General Motors future success, and their investment in it show their commitment to ensuring it continues on. Over a period of time this should be one of the best markets for the company.