The Hindu Business Line : GM may use Hindustan Motors plant to make Chevvy Spark

GENERAL Motors is considering using Hindustan Motors' facility or the CKD (completely knocked down) route to manufacture the small car Chevvy Spark in India, if it abandons its plans to take over the Daewoo plant.

General Motors last week said its plans to take over some of the assets of Daewoo Motors India Ltd have been delayed because of the plant's unresolved debts.

A company official told Business Line that if the Government does not resolve the pending issues within a few weeks, it might be forced to look at other options.

One of the options it may consider is to explore the possibility of using Hindustan Motors' facility to make the Chevvy Spark.

The diesel engine and transmission parts for General Motors's multi-utility vehicle Tavera is currently being manufactured at one of Hindustan Motors' plants.

General Motors may also consider the Fiat plant. But what could go against it is that the Ranjangoan plant of Fiat can only offer land, as there isn't much machinery available there. The Kurla plant is another option but since it is in the heart of Mumbai, it may not be considered viable - as for expansion General Motors will have to look for another site.

Another option will be to import CKD kits from South Korea and assemble the small car in its existing plant. The official said this would not affect the pricing of the car.

Chevvy Spark is expected to be positioned directly against Maruti Zen and Indica.

The official said the Indian operations of General Motors would see much more investment from the largest carmaker in the world. The capacity of the Halol plant in Gujarat is being doubled to 60,000 units in 2005. He said General Motors considered India as the most important country for expansion after China.

General Motors has ranked India as the third most important emerging market among eight countries while South Korea, where it has a joint venture, is ranked fifth.