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General Motors plans new small car

NEW DELHI: General Motors is planning to come out with its new small car within the next two years and price it even below ‘Spark’, its cheapest model in India. It is planning to consolidate its $300 million export business of automotive components.

“I think there is enough space for entry of yet another car in the small car segment. We are planning to introduce a small car in the next two years, which will first be launched in India,” said General Motors Group Vice-President David N Reilly here, adding that the new small car would cost less than Chevrolet Spark.

Mr. Reilly, who is also General Motors’ President for Asia Pacific operations, said the proposed new small car would open up new markets for them. “India has the full potential of becoming a lucrative export hub for small cars and we are planning to make India for our small cars,” he added. After improving its domestic market share, the company would export only small and medium cars from here. He, however, said the new car would be in competition to Tata Motors’ Rs. 1-lakh car ‘Nano’ unveiled earlier this year at the Auto Expo here. The company is targeting a 10-per cent market share in the Indian auto market by 2010 from the current level of three per cent.

General Motors also expects its export volume, which now stands at $300 million, to grow 2-3 times in the next 3-4 years.

The company is looking at introducing the low-cost pick-up vans and other mini vehicles.

“Till now we have been producing cars, which are low cost and competitive, only to meet the Chinese demand. But now we are seriously looking for introducing these outside China, including India,” he added.

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