GM to launch small car to compete against Maruti Alto

General Motors has ventured with Shanghai Automotive Industry Corporation (SAIC) and has challenged the domestic auto biggies Maruti Suzuki as through JV the company wish to enter the A segment in India. Under the venture the companies will introduce a small car against the best seller in the A segment Maruti Alto. As per the sales figures, Maruti sells almost 30,000 car models monthly.

Tim Lee, President- International Operations at GM present in India for the launch of 'Smartech' the locally manufactured engines said that GM was looking at various options to introduce in the Indian auto market and one among them could pitch against Maruti Alto. The company is considering every opportunity by aiming at every segment. Currently the company does not offer any product in the A segment and wishes to enjoy the A segment's growth. Lee also mentioned that SAIC will play a vital role in developing the small car. He also said that the companies will not develop a new small car as it will be quite expensive however the car will role out from GM and SAIC portfolio itself.

General Motors entry level car is Chevrolet Spark and thus the new small car will be priced below the current hatchback. GM has joined the club with Honda, Tata and Hyundai to bring in a small car against the best seller in the A3 segment.

Lee said that at present, India is a key market for the US auto giants. The company wishes to move forward and will not repeat the earlier mistakes and is all set to cement its position in India. GM has been in India for 14 years and enjoys only 4.6 per cent of the market share which it plans to increase. Last year GM rolled out 110,804 cars over the previous years sale of 69,579 cars. The company is all set to increase its portfolio by launching six new car models in the coming two years time.

Lee, throwing some light on the new launches said that among the six new vehicles four will be passenger cars and the other two will be light commercial vehicles. He added that SAIC will help in the production and design of the car and GM will help in the marketing, branding, distribution of the cars.

In December 2009, GM and SAIC formed an equal partnership in Hong Kong for the expansion plan for the upcoming auto market.

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