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General Motors India is upbeat on the Indian automotive market in spite of tough business environment. It is all set to launch three new models — a hatchback, sedan and utility vehicle early next year, along with Euro IV version of the Tavera later this year.
Of the five models slated for launch by next year, couple of them are likely to be from the Chinese venture partner SAIC Motor’s stable.
The research and development teams based at Bangalore, about 2,500-strong, along with other design teams, are working on localisation of these cars to suit the Indian conditions, according to Mr P. Balendran, Vice-President of General Motors India.
Addressing a press conference here today to launch the Beat diesel in Andhra Pradesh, Mr Balendran said “the company is currently on expansion drive, investing about $500 million across two plants located at Halol and Talegaon. This is in addition to Rs 5,000 crore investment made by the global automotive major in India. These will bring in the flexibility to launch new models along with wide range of engine options.”
“The company, which closed last year with total sales of about 1.1 lakh vehicles in India, expects to achieve sales of over 1.4 lakh. We are targeting to double the total market share from 4 per cent last year within couple of years,” Mr Balendran said.
The Vice President-Marketing, Mr Sumit Sawhney, said: “The Tavera with Euro IV engine will be launched during the year. Diesel vehicles will form a major part of the GM strategy going forward.”
Referring to the market conditions, Mr Balendran said: “There is tremendous pressure on automotive business. From a high growth of 30 per cent in 2010, and a projection of about 12-16 per cent, it is likely that the growth would be muted at single digit the way things are moving. This is because of high interest rates, which are forcing buyers to put off their sales.”
The Beat diesel is priced at Rs 4.37 lakh to Rs 5.55 lakh ex-showroom in Andhra Pradesh. This inaugural price is valid for two months.
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