The Hindu Business Line : GM may hike capacity of Gujarat Halol plant

Ahmedabad June 15 Even as General Motors India's new manufacturing plant at Talegaon, Pune, is set to be commissioned next year with an initial installed capacity of 1.40 lakh cars per annum, the capacity of its existing Halol plant in Gujarat may be expanded from the current 85,000 to about one lakh cars in a couple of years.

"The capacity of the Haalol plant near Vadodara, where the company has invested Rs 1,400 crore so far, has been increased recently from 60,000 to 85,000 cars per annum. We will be making around 66,000 cars this year but, in view of increased demand, we may increase the capacity to between 90,000 and one lakh cars per annum," Mr P. Balendran, Director and Vice-President (Corporate Affairs), told Business Line here today.

Auto ancillary park

The company was also in talks with the Gujarat Government to develop an automobile ancillary park near Halol. It was in the process of tying up with technical institutions in Gujarat to ascertain the kind of synergy to be created both as a business opportunity and corporate social responsibility (CSR), he added.

These expansion plans are in view of the projected increase in the company's market share from the current four per cent to 10 per cent by 2010. It had begun to make profit from 2004 onwards

The company, which introduced five models of cars during the last one year — the Aveo, SRV, Aveo U-Va, Optra Diesel luxury sedan and the Chevrolet Spark mini-car— will continue to introduce at least two new models every year till 2010.

The sales target of all seven GM's Chevrolet models across India has increased from 35,000 to 66,000 this year. Of all models, U-Va has proved most popular with a waiting list of two months for customers who want to buy it. Optra Diesel and Spark were launched in Ahmedabad today.

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