GM working on new car platform to underpin three future products

General Motors is working on a project codenamed "Amber," a grounds-up new platform that will underpin at least three new car models to give a boost to its sagging sales in India and other emerging markets. The move comes after several attempts including its new products - Sail and Enjoy have failed to make an impact in India. The new platform will spawn three cars in different segments, a premium hatchback, a compact sedan and a compact SUV for the emerging markets of India, Brazil, Thailand, Russia, Mexico, among other markets.

The global CEO of GM, Mary Barra too is closely following the development of the project. The Amber is planned to be designed in Europe and engineered in Brazil. The Amber project has a global potential of 1-1.2 million units, with India expected to contribute about 1.5 lakh units annually to the project, said people close to the development.

"With regards to India, the priority is on the compact SUV, but the platform will also have a premium hatchback and an entry level sedan. The projects are likely to be launched in India and Brazil concurrently or within a matter of 6 months," said a person in the know of the development.

But the catch is, if plans fructify, the cars based on this platform will only hit the Indian market by first half of 2018, which is a good four years away. Already its new introductions have not brought the incremental volumes, the company expected. How the company can sustain itself in India with volumes falling and losses piling up, said an analyst who did not want to be named.

From the high of 1.10 lakh units and a market share of 4.18% in FY-12, the company's sales at the end of FY-14 came down to 80,000 units with a market share of around 3% and this is despite the fresh introduction of Sail hatchback, Sedan and Enjoy MPV, which was aimed to double the company's volumes to 2,00,000 units by end of 2013. In the first two months of FY-15, both Sail (hatchback and sedan) and MPV saw a decline of 25-30% at least.

On the Amber project, GM India vice president, P Balendran said, "It is purely speculative and the company does not comment on speculation." On the way ahead, Balendran said, the company has a fairly good product mix from small car to premium SUV and the company will be launching upgraded versions of its existing products to create excitement amongst customers to meet their evolving needs.