GM India small car plan scraped

Published On Jun 24, 2011 03:44 PM By Vikas for Tata Nano

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General Motors India recently made an announcement that the company has postponed their plans to launch a small car in India which was supposed to take on Tata Nano. This Small car was under discussion when the Tata Nano was launched in India. Reporters were told by the President and MD Karl Slym of GM India that presently it is not right for the company. The car was supposed to be put below the lowest version of Chevrolet in India that is Chevrolet Spark. The company now will not go below the segment where Chevrolet Spark is present and all other models will be placed above this car.

Tata Nano

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The present Chevrolet Spark comes with a 1,000 cc engine both in petrol and LPG version. The price of the car is between Rs 3.01 lakh and Rs 4.31 lakh (ex-showroom, Delhi). Chevrolet Spark, Chevrolet Beat, Chevrolet Aveo U-VA, Chevrolet Aveo 2009, Chevrolet Travera and Chevrolet Captiva are the few other Cars in India by General Motors. This small car was supposed to give competition to Tata Nano. Tata Nano price in India at starting was Rs. 1,00,000/- INR and now it has increased to Rs. 1,96,956/- INR (ex-showroom Delhi), at this price the company will surely have to think several times. Postponing this, the company has now geared up for the launch of Chevrolet Beat Diesel.

Chevrolet Spark

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This new car will be going to be the most fuel efficient car, as per ARAI standards this car will give a mileage of about 24 kmpl. The US car maker is investing USD 500 million to increase the production capacity of it units in Gujrat and Maharashtra. The company will also be hiring 1,000 workers more by 2012 to increase the production capacity over 80% and manufacture 4.1 lakh units per annum.The increase in production at such high rate is also due to one more reason as the company is trying to roll out its Chinese partner SAIC's commercial vehicles (CVs) in India.