GM to launch small car in India next year

Our Corporate Bureau
29 June 2006

Mumbai: The world's largest automaker General Motors is planning to launch a mini car in India, Rajeev Chaba, President and Managing Director, General Motors India, said today. Production of the small car is expected to begin in the first half of next year, he said. Although he did not name the model, the mini car is expected to be the Chevrolet Spark.

Chaba was addressing reporters at the launch of GM's sports car, Chevrolet SRV.

The company will utilise the increased capacity of its Halol plant for the initial roll-out of the mini car. The Halol plant is expected to reach a capacity of 85,000 units this year against the company's current sales of 45,000-50,000 cars.

Chaba said the company would also get excise benefits with the launch of the mini car. The government had announced excise duty cuts for small cars in this year's budget. He, however, said the company is yet to take a final decision on its second plant.

He said the company intends to get into the volume-driven small car segment to increase volumes in India, but did not specify how the company intends to meet the additional capacity needed for the mini car. "We are looking for, and still deciding on the alternate capacity. But, at the moment, we cannot give a definitive answer," he said.

The Chevrolet SRV has a price tag starting from Rs 6.97 lakh ex-showroom in Delhi and is targeted at young professionals. The car is also available with 'option pack' - additional features - at a price of Rs 7.51 lakh (ex-showroom Delhi).