General Motors India will be sourcing over 80 per cent of components locally for its new models, including for the five new models slated to be wheeled out next year.

The company is revving up to launch five new models with 14 fuel variants, including CNG and LPG options, next year in the non-mini segment.

It has, however, shelved plans to drive into the low-cost market, while putting off plans to drive its marquee brand Cadillac in the domestic market.

“For some of our existing models, the local sourcing for components is almost 98 per cent. Only for those components not available locally, we get it from overseas,” Mr Karl Slym, GM India's President and Managing Director, told Business Line on the sidelines of a function to mark the launch of a new outlet here.

Amongst the new models slated for launch next year is the LCV model, in association with its Chinese partner, Shanghai Automotive Industry Corporation, which will hit the Indian road in the first half of 2012.

“We see significant opportunities in the LCV segment, with the (Indian) market size estimated at 0.5 million units and growing at 24 per cent,” he said. In tune with industry trends, GM India has scaled down its earlier projections of selling 1.5 lakh units this fiscal (1.15 lakh units last fiscal) by 10 per cent in the wake of the rising fuel prices and stiff interest regime.

Mr Slym ruled out the possibility of price cuts even in the event of a continued downtrend in the auto sector.

“We are making our manufacturing facilities more flexible to change variants.

“One year back, our portfolio was 70 per cent petrol and 30 per cent diesel, but today it is exactly the other way round,” he pointed out.

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