The Hindu Business Line : More variants from new General Motors’ unit soon

Hyderabad, Oct. 15 With its new manufacturing base getting into production mode at Talegaon in Maharashtra this month, General Motors expects to launch more variants including alternative fuel options and a mini car.

The Vice-President of General Motors India, Mr Ankush Arora, said the new capacity of 1,40,000 units a year now ready will enable the company to offer more small cars with fuel options such as LPG, CNG and possibly diesel, depending on what the market demands.

MINI CAR

However, the company official said while the company R&D teams based in Bangalore are working on a new small (mini) car, he did not disclose the time frame for its launch in India.

Addressing a press conference here to announce the roll out of the company’s latest offering, Tavera Neo 2, Mr Arora said the new plant will add capacity and help the company grow its sales up from 60,000 to 85,000 during the current year.

“As the new engine transmission project gets ready with an investment of another $200 million, we will be able to offer more options to buyers,” he said.

FESTIVE DEMAND seen

Referring to the market conditions, which had resulted in slightly lower purchase of new cars in July and August, Mr Arora said the festive season will provide the much needed boost to automotive sales in the country.

Pressure on credit supplies and interest rates have impacted overall automotive sales in the country. Within five-six months, the automotive industry will be back on track, he said.

“While the industry has registered a growth of about 6.5 per cent during the year, we have managed to grow at much faster rate. Last year, growth was 13 per cent. With the new plant we will be able to roll out about 5,000 Sparks a month,” he said.

MUV FOCUS

The Vice-President, Corporate Affairs, GMI, Mr P. Balendran, said the company sold 75,000 Taveras since its roll out in India about four years ago and the version two launched now will add to its growing volumes.

The company aims at a market share of about 19 per cent this year in the Multi Utility Vehicle (MUV) market, up from 14.5-15 per cent last year. In fact, the company output for Captiva is fully sold out, he said.

The MUV market is estimated at 1,20,000 during the current year.

GMI is in the process of increasing its dealership and sales and services outlets to about 188 by December.

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