News: GM cranks out big India plans
(DNA 22/12/2006) Mumbai - If you thought that the excise reduction for small cars this Budget would help bring down prices of new launches, you could well be wrong. Take the case of General Motors. The company delayed entry into the small-car segment with Aveo UVA by more than four months, fitting it with a 1.2 litre petrol engine instead of the earlier 1.3 litre one, just to qualify in the lower, 16% excise bracket.
But the company appears to have chosen competitive pricing while refraining from making the new offering any lighter on the pocket than the existing premium hatchbacks — Maruti Swift and Hyundai Getz.
In the months to come, the premium hatchback is expected to see additions such as Swift diesel and Hyundai Getz 1.2 litre petrol — both these models would qualify for the lower excise bracket and it remains to be seen whether they pass on the excise benefit to the consumer either.
However, there are several firsts General Motors is offering to the Indian consumer, such as a warranty for three years or one lakh kilometers — something no other hatchback brand offers at present. Also, the company claims that the maintenance of the UVA would come to a mere 23 paise per km for the first one lakh km, which is 18% lower than the maintenance budget needed for Maruti Swift.
But will lower maintenance cost help GM rise above its well-entrenched competitors? GM is looking at 20,000 unit combined sales of the Aveo family next year (the UVA and the sedan) against about 60,000 of Maruti Swift and over 15,000 of Hyundai Swift each year.
Says Rajeev Chaba, president and CEO of GM India: “We have capacity constraints and are not looking at the sales numbers of competition right now. Our second production facility will go onstream only in 2008 so we will have to supply all our models from the enhanced 80,000 unit capacity we will achieve at Hallol in a few months from now.”
Aveo has been one of the successful models from GM across the globe, selling one lakh units (combined Aveo and Aveo UVA) in the US and about 1.2 lakh in China every year.
Road rush
Plans to launch mini car Chevy Spark by April next year; Optra diesel, too, on the anvil. Also mulling the launch of high-end models like Captiva SUV and Cadillac in India. General Motors plans to triple its share in the country to 10% by the end of the decade
But the company appears to have chosen competitive pricing while refraining from making the new offering any lighter on the pocket than the existing premium hatchbacks — Maruti Swift and Hyundai Getz.
In the months to come, the premium hatchback is expected to see additions such as Swift diesel and Hyundai Getz 1.2 litre petrol — both these models would qualify for the lower excise bracket and it remains to be seen whether they pass on the excise benefit to the consumer either.
However, there are several firsts General Motors is offering to the Indian consumer, such as a warranty for three years or one lakh kilometers — something no other hatchback brand offers at present. Also, the company claims that the maintenance of the UVA would come to a mere 23 paise per km for the first one lakh km, which is 18% lower than the maintenance budget needed for Maruti Swift.
But will lower maintenance cost help GM rise above its well-entrenched competitors? GM is looking at 20,000 unit combined sales of the Aveo family next year (the UVA and the sedan) against about 60,000 of Maruti Swift and over 15,000 of Hyundai Swift each year.
Says Rajeev Chaba, president and CEO of GM India: “We have capacity constraints and are not looking at the sales numbers of competition right now. Our second production facility will go onstream only in 2008 so we will have to supply all our models from the enhanced 80,000 unit capacity we will achieve at Hallol in a few months from now.”
Aveo has been one of the successful models from GM across the globe, selling one lakh units (combined Aveo and Aveo UVA) in the US and about 1.2 lakh in China every year.
Road rush
Plans to launch mini car Chevy Spark by April next year; Optra diesel, too, on the anvil. Also mulling the launch of high-end models like Captiva SUV and Cadillac in India. General Motors plans to triple its share in the country to 10% by the end of the decade
posted by InCar Group Press Room at 21:30
0 Comments:
Post a Comment
<< Home