GM To Launch 3 New Cars In India

New Delhi, India - Feb. 6, 2006: General Motors India recently presented three new cars to be launched in India under the Chevrolet brand between February and June. The vehicles are the premium hatchback Aveo U-VA, premium sedan Aveo and Optra SRV (sports recreational vehicle).

GMI, which is the Indian subsidiary of world's largest auto company General Motors, has less than 3 % of the Indian market and will be hoping that the new models will significantly increase their market share. It’s hoped that he Aveo U-VA will be GM’s main hero. In India it competes in the same segment as the home-grown Maruti Swift and Hyundai Getz. Mid-size sedan Aveo will compete with the Honda City.

The company said it was looking to corner 10 per cent share of the Indian market by 2010, when the size of the market is projected to double to 2 million. GMI is expanding capacity at its Halol plant in Gujarat from 60,000 units to 85,000 units with an investment of Rs 100 crore (Rs 1 billion). One hundred Indian rupees is equivalent to approximately $2.26 US.

GMI did not reveal the price or the technical specifications of the new models but said all three would come in petrol engine versions to start with, having engine capacities in the range of 1.4 to 1.8 litre.

Among the existing range of products in the market under the GMI banner, the only volume-driven model is its utility vehicle, the Chevrolet Tavera, which sells a little less than 2000 units a month.

GMI president and managing director Rajeev Chaba said, "Chevrolet is among the fastest growing car brands in India and will push up the company's sales."

The company is also opening two additional parts distribution centers, one each in Maharashtra and Delhi, to complement the existing ones at Halol and Chennai. Besides the Chevrolet Tavera, the GMI also sells the Chevrolet Optra and the Corsa that are manufactured at its Halol facility. The company also sells two other models - the Opel Vectra and the Chevrolet Forester - as fully imported units.

In calendar year 2005, total GMI sales were 31,000 units, which was 18 per cent more than the volume sold in 2004.