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Pune, Nov. 12 Despite the on-going downturn in the Indian automobile sector, General Motors India says its expansion plans are on track, and the company will launch its sedan – the Chevrolet Cruze – in the country simultaneous to its introduction elsewhere in the world in the middle of 2009. It will be produced at GM’s plant in Halol.

A new mini-car, currently being developed on a brand new platform, will also be rolled out of its Talegaon plant next year, Mr P. Balendran, Vice-President (Corporate Affairs), said, adding that GMI’s second plant in India will be a hub for small and mini-cars.

Around 200 cars a day of the Chevrolet Spark are now being produced here, and the extra capacity generated has been responsible for sales of 4,390 units of the model during October against 1,800 units in the same month last year, he said.

Though GM’s North American and European business has been severely hit, and the company is reportedly seeking a bail-out package from the US government, the Indian operations have not been impacted, Mr Balendran asserted, adding that the business in GM’s Asia Pacific division was on a growth path. “All our expansion, including $210 million in a new engine plant at Talegaon, is through internal accruals,” Mr Balendran asserted.

In India, GM’s sales grew six per cent during October, mainly on the back of the Spark and the Captiva. “Both these have a wait-list till December,” Mr Balendran said, admitting however that the Aveo, Tavera and Optra sales have been hit in line with the trend in the industry. “We expect to sell 78,000 units this (calendar) year against 60,032 last year,” he said. The company is also enhancing its dealer network from the existing 145 to 195 and increasing service stations from 148 to 198 by December.

GM’s upcoming engine plant at Talegaon, the company’s first flexi plant (producing both petrol and diesel engines) worldwide with a capacity to produce 1,60,000 engines, for mini and small cars, is progressing as scheduled, and will go into commercial production in the first quarter of 2010.

More Stories on : Outlook | Cars

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