GM to launch another small car in two years

SMALL WONDER: GM is developing a sub $5000 car which will be positioned between Nano and Spark.

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Keywords: New Car, Market Share

New Delhi: From less than a 1 per cent market share a year ago, General Motors today commands 3 per cent of the Indian car market. Now the car maker is looking at going smaller and cheaper to triple its market share in the next 2-3 years.

Enthused by the sales of Chevrolet Spark and the UVA General Motors is planning to go even smaller.

While it may not go as small on size or price as the Nano, GM is developing a sub $5000 car which will be positioned between Tata's Nano and Chevy's Spark.

That’s not all GM is also working on another small car which could bear resemblance to GM's concept car beat, which was showcased at the Frankfurt motor show last year. The car will be priced in Rs 3 lakh bracket.

General Motor Asia-Pacific Group VP, President D Nick Reilly said, “Segment is very significant and there would be a second entry into the segment. Plans to add 3-4 new models across the different segments in the next three years.”

The Spark along with the UVA have been largely responsible for changing GM's fortunes in India.

Currently, both these models contribute more than half of its total sales. The company is targeting sales of 90,000 units in 2008 and expects small cars to make up more than half of that number.

Not just small, GM wants to exploit the still nascent LCV space in India. GM will export small trucks, pickups and vans in the range of $5000- $6000 from its Chinese partner Wuling.

GM has committed a total of $4 billion investment in the Asia Pac region out of which a substantial chunk will drive into India.

GM will invest $200 million initially into its new power terrain facility, details of which will be announced next month.

This will manufacture both petrol and diesel engines for India and exports.