Date:16/11/2006 URL: http://www.thehindubusinessline.com/2006/11/16/stories/2006111602350300.htm

Back Work on GM's Talegaon plant to begin on Nov 21

Sudha Menon

Chevrolet Spark launch in first half of 2007

Pune , Nov. 15

General Motors India (GMI) is kicking off work on its over Rs 1,300-crore greenfield plant at Talegaon, Maharashtra on November 21, with Mr Nick Reilly, its Asia-Pacific President, flying in for the groundbreaking ceremony along with high-ranking officials from GM's global manufacturing family.

The company is also ready to launch its much-awaited volume car, the Chevrolet Spark, in the market in the first half of the calendar year 2007, the GMI President and Managing Director, Mr Rajeev Chaba, told Business Line. "The car is being validated on Indian roads just now and we are working on localisation and other details and the car will be available on roads by the first half of 2007,'' Mr Chaba said.

Top company sources, meanwhile, told Business Line the company is simultaneously working towards the launch of its premium SUV, Captiva, in India. Also, work is on at a fast pace to launch a 1.2-litre version of its Aveo sedan and its sports variant U-VA, so that the company can get in volumes by taking advantage of the excise benefits available to small cars at present.

"We are right now working towards launching the U-VA, our premium B + category car in December,'' Mr Chaba said. The U-VA is to roll out next month with a 1.4-litre engine.

Sources also said that a diesel offering of its Optra model is due to roll out by mid-2007 to take on competition in this segment from the diesel Hyundai Verna and Ford Fiesta. Its existing SUV, the Tavera, is already available in diesel. Mr Chaba declined to comment on the subject.

Work on the company's Talegaon plant, meanwhile, is all set to begin and Mr Chaba said the new plant, set on 300 acres, is likely to go into production by the third quarter of 2008.

While the Chevvy Spark will initially be manufactured at Halol, production will shift to Talegaon, which will be its hub for small cars. The initial annual production capacity at the new plant will be 140,000 vehicles per year, more than doubling GM's total capacity in India to over 220,000 units.

The Spark launch is a crucial part of GM's India strategy where it is currently without any offering in the largest segment of the market. The company has made inroads into the market recently with offerings such as the Tavera, the Optra and the U-VA, but what will give it volumes will be the A segment product.