GM’s promise: A car cheaper than its Spark

 

General Motors may have been a little slow in capturing the India growth story but it is trying hard to make up for lost time. The company, which lays claim to barely 3 per cent of the domestic passenger car market, is pulling out many stops to script the growth saga: a second small car priced lower than the Spark is under development and if things work out well, low-cost commercial vehicles such as pick-ups and vans would also be sold in India.

The auto giant’s second manufacturing facility with 1.4 lakh unit annual capacity at Talegaon is ready for trial production; a separate powertrain facility is also already in the works.

David N Reilly, general manager, Asia-Pacific, General Motors, said the company has “taken a little longer than it should have (to develop the market in India) but we are finally on the right track. There will be many different products in the mini and small segments on offer and manufacturing capacity is already being tripled through significant investments”.

Pointing out that GM’s India plans took a beating in the two years it was negotiating the purchase of the Daewoo plant, Reilly said sales of Spark would have been far higher had a decision to set up Greenfield facility at Hallol been taken earlier. While declining to provide details of the proposed engine and powertrain facility, he said: “We will be able to make an announcement within the next two months.”

At present, GM imports engines for all the vehicles it sells in India except for the Tavera, which uses engines made by Hindustan Motors. Imported engines attract up to 80 per cent duties; having an engine facility would enable GM to not only reduce costs but also enter the expanding diesel market. It may be looking to manufacture close to a million diesel and petrol engines at the new facility.

Indicating (perhaps for the first time) GM’s interest in bringing low-cost CVs to India, Reilly said that a company co-owned by it in China (SAIC-GM-Wuling Automobile Co) is already making pick-ups and vans which are very low priced and therefore very competitive.

“We are looking at how we can use this product outside China, to meet regulations in different countries for such products”.

Does this mean GM is also interested in the ultra low-cost segment such as the Tata Nano? Reilly said though a competition with Nano’s price point is ruled out, General Motors is actively looking to make cars which are cheaper than the cheapest vehicle currently in its global portfolio, the Chevrolet Spark.

Source: sify.com

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