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Mayur N. Shah

Mumbai April 16 On Tuesday, General Motors India will launch nationwide their most awaited small car, the Chevrolet Spark.

According to senior officials, the company will introduce the small car initially in the North and West, with New Delhi and Mumbai getting the first feel. Currently, Delhi and large parts of North India hold the record for highest car sales. Mumbai and other parts of the West region will play an important role being near to the Halol factory in Gujarat.

The company faces a production constraint at its Halol plant in Baroda. According to senior officials, the company will initially produce 2,000 Spark units per month despite having a total production capacity of 85,000 units per annum.

New generation

The company also manufacturers the Chevrolet brand of cars (Tavera, Aveo and Optra) at the same facility. Production schedules will not harm the demand-supply curve for the current model range.

The first small car from GM stable is likely to cost Rs 3.25-Rs 4 lakh (ex-showroom, Mumbai). It will be fitted with a four-cylinder, 1-litre (1000 cc) petrol engine, though industry sources said they are working on a new-generation Spark, which may be introduced when the small car production is shifted to the upcoming Talegaon plant in Maharashtra.

Besides the launch of the car, investment plans (around $250-300 million) for a forthcoming power train plant (diesel and petrol engines) are likely to be announced too. Maharashtra is in the race for the new plant. Mr Rick Wagoner, Chairman, General Motors Corporation will visit the company's science lab in Bangalore.

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