The Economic Times (Print Edition)
General Motors India is looking at pegging its new small car, which will hit the street by the 2009 -end, in the sub-Rs 4 lakh band. The pricing of small car, first unveiled at the Geneva Motor Show earlier this year, will be just above Spark, which carries a tag of Rs 2.6 to Rs 3.4 lakh range.
While the parent company in the US is struggling to stave off bankruptcy by a government bailout, for GM India, "Its business as usual and all investments are on track," according to the company president and managing director Karl Slym. Last month, GM India sold 5,001 units, a 5% growth over its February sales. In fact, he says: "We are seeing a slight revival in the sector". There is no proposal to phase out the Spark as of now, he said, and it continues to be their entry-level car.
GM India said, the company will launch its high-end salon, Cruise, in the Rs 12-13 lakh price point. The small car, which Mr Slym refers to as the mini-car , will be launched in both petrol and diesel versions. The engine for this car will be made in India by middle of next year at its factory at Talegaon. Even before its engines are made in India, the mini car will have a localisation of around 65%.