GM plans to roll out new models over two years

Chanchal Pal Chauhan, The Economic Times             5 June 2009

Company has set a target of 10% market share By 2010

General Motors India (GMI) plans to roll out at least five new models in the next two years, despite being hobbled by the financial woes of its once illustrious US based parent, company officials and auto component suppliers say. GMI is developing two new small cars in the Spark segment to grab a larger share of India's 800,000 units-a-year compact car market. One of the small cars is based on the Beat platform, a small car meant to be launched in Europe and Asia markets, and will have a tall boy design similar to Maruti's Ritz and WagonR and Hyundai's Santro. The car is expected to hit the market later this year.

The Cruze sedan, based on its Optra platform, will be launched in September this year. This apart, utility vehicle Tavera will undergo major design and technology changes early next year, while a premium hatchback will be launched late next year. Its largest selling car - Spark - will also come in a new avatar this fiscal year.

GMI's vice-president for corporate affairs, P Balendran, said the company was working on a couple of platforms for the Indian market. "We will launch two new cars, and a few alternative fuel vehicles fired by CNG and LPG. We have finalised our marketing strategy for the next year to launch new products so that we utilise our annual production capacity of 2.25 lakh units," he said.

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Three autoparts makers, working closely with the company for the new cars, said two cars will be launched as per schedule this year, and that GMI has asked them to adhere to the deadline for delivery of critical components. "While the company has sufficient funds to roll out new models for this year, there could be uncertainty over the new small car and other products next year," a Delhi-based vendor said.

GMI, which is part of the so called 'Good GM', but has to find its own sources of funding following the bankruptcy of its Detroit-based parent, has set itself a target of grabbing a 10% market share by 2010 in India, and the new cars are vital to these plans.