The Hindu Business Line : GM plans to source parts worth $250 m from India

Refreshed model: Mr Rajeev Chaba, President & Managing Director, General Motors India, with Bollywood actor and brand ambassador of Chevrolet Aveo, Ms Rani Mukherjee, at the launch of new Chevrolet Aveo, in the Capital on Friday.- Ramesh Sharma

New Delhi, Aug. 10 The small car market may be heating up, but General Motors does not have any plans on a third small car.

“We already have Spark and Aveo U-VA. We have no plans on a third car or a model below Spark,” said Mr Rajeev Chabba, President and Managing Director, General Motors India, on the sidelines of the launch of a refreshed model of its sedan, Chevrolet Aveo priced between 5.9 lakh and Rs 6.8 lakh.

Meanwhile, Mr Chabba also said the company was planning to source $250 million worth of components from India every year, in line with its target to source $1 billion in the coming 4-5 years.

“The idea is to ensure that we allow Indian component makers to participate in the bidding process for our global contracts. We would identify components like wiring harness, forging products amongst others in every category where Indian players would have an edge as compared to Chinese or Taiwanese suppliers who may be able to offer certain components at a much lower cost,” he said.

The General Motors CEO, Mr Rick Wagoner, during his visit in April had also said that the company intended to source components from India to meet its global requirements.

Maintenance programme

The company also introduced a maintenance programme for all its models that would allow the customers to reclaim or get a refund from the company if the cost exceeds or is less than the amount spent by the customer on the package.

The package is valid for three years or 45,000 km and would range between Rs 13,000 and Rs 27,000.

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