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General Motors India is expanding its diesel portfolio across small cars, sedans and multi-utility vehicles.
The move is part of the company’s strategy to address the growing demand for diesel cars in the country as sales of petrol cars has been slowing down.
Mr Lowell C. Paddock, President and Managing Director of General Motors India, said new generation diesel cars offer fuel efficiency that is nearly 15 to 20 per cent more than that of a comparable petrol car. Additionally, the price differential between diesel and petrol in India makes it more attractive to own a diesel car.
“With flexible manufacturing facilities at Halol and Talegaon, we now have the capability to offer a wider range of diesel engine options starting from one litre engines that power the Beat and going up to 2.2 litre engines in the Captiva. We will soon offer cars powered by 1.3 litre engines, both hatch and sedan. The range will get bigger,” he said.
There is considerable confusion regarding the taxation structure for diesel cars, fuel subsidies and high interest rates that are keeping buyers away. There seems to be a clear policy paralysis. The Government needs to address the auto sector’s concerns urgently Mr P. Balendran, Vice-President of General Motors India, said.
“The first half of this year has been pretty disappointing for automakers. We hope new launches during the festive season will help generate new volumes,” he said.
The US auto major today welcomed the Government move to implement a car recall code.
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