GM to introduce new, fuel-efficienct and bi-fuel cars in India

With the success of its two hatchbacks in the Indian market, General Motors India is set to come out with a third one by the end of the year.

Following the Chevrolet and Spark, the "new Chevrolet Mini will not be a competition to Tata Motors' Nano. We are not in the numbers game. It will be positioned above the Chevrolet U-VA. Pricing will be around that range," said Karl Slym, president and managing director of General Motors India.

Speaking at the launch event of the company's sports utility vehicle (SUV) the Chevrolet Captiva's automatic variant, being at Rs20.3 lakh.

Reports quoted company executives as saying that the Chevrolet Mini would be positioned against Hyundai's recently launched i20.

Initially GM had planned to import the car as a completely knocked down kit into India, though now reports said it would manufacture the vehicle at its Talegaon plant in Maharashtra. The car is expected to hit the market in both petrol and diesel options, and is presently reported to be undergoing the fine tuning process of mapping the product to suit Indian road conditions.

In the premium segment, the Chevrolet Cruz would make its début sometime around the middle of 2009, providing some competition to the likes of Honda's Accord and Toyota's Camry. GM said that a one-week planned shut down at its Halol plant in December 2008 was to allow it to outfit the assembly lines to manufacture the Chevrolet Cruz.

Starting this year, General Motors India will also start offering bi-fuel cars that run on CNG or LPG as well as petrol. In the US, the Captiva has a hydrogen fuel variant. Slym attributed the lack of infrastructure as the reason the company has not introduced thye hydrogen-fuel car here in India.

GM would launch an LPG-powered car sometime during the first half of the year, Slym said, while adding that it would be followed by other LPG vehicles.

GM India already has the its current sedan, the Chevrolet Optra, available in the CNG variant, and the company would look at a similar course of action for its entry level sedan, the Chevrolet Aveo.

Slym said that GM's strategy has been to first come out with "high fuel efficiency in all our vehicles". "Then we will be introducing vehicles powered by (alternative) fuels like CNG and LPG, besides having different power-trains and different displacements," reports quoted him as saying.

GM is reported to have sold around 65,000 units last year in the domestic market, growing by 10 per cent despite the two per cent drop in growth witnessed by the passenger vehicle industry in 2008.

Reports said that GM's domestic market share notched up a few points from 2.9 per cent in 2007 to 3.4 per cent in 2008. the company is planning to make India its hub for power trains for Asia Pacific, after the completion of the $200 million power train facility at Talegaon in 2010.