GM may source Tavera engines from Sonalika

NEW DELHI: General Motors is planning to source engines from the Sonalika Group for its multi-purpose vehicle Tavera in India, to meet new emission norms.

A formal announcement regarding the sourcing of Bharat Stage IV compliant engines from Sonalika is likely to be done within this week.

According to sources close to the development, General Motors India has finalised the deal and signing of the agreement will be carried out within next few days.

“GM India has finalised to source BS IV engines for one of its best sellers Tavera from Sonalika, which has already upgraded its own utility vehicle Rhino to the new emission norms,” a source said.

When contacted, General Motors India V-P P Balendran said: “We are in discussion with 3-4 vendors for sourcing Tavera’s engine. As soon as anything gets finalised, we will announce.” Sonalika Group chairman L D Mittal declined to comment.

The sources, however, said GM India is currently conducting testings of the engines with the Tavera. GM India had to stop selling Tavera in 13 cities, including Delhi, Kolkata, Mumbai, Chennai and Bangalore, as it could not upgrade engines to comply with BS IV emission norms which came into effect from April.

The company had announced to temporarily withdraw the vehicle and said it would be upgraded later. It, however, has not witnessed any major change in Tavera’s sales since April. The vehicle has been maintaining sales of about 1,500-1,600 units a month, indicating that dispatches in other locations have increased.

Source: indiacar.com Source : Economic Times (8/8/2010)