No global worries for GM India operations

The company,which aims to make the country its power train hub,will export engines from its Talegaon facility once it starts functioning. The small car will be manufactured at the Talegaon plant,which now manufactures Spark.

“The situation here is different from those in other markets. The market in Asia-Pacific region is doing good and the Indian market is one of the emerging markets for us. The saturation level is low here and there is a higher expectation of growth. We are launching two more vehicles in the country this year — Cruise and a mini car. Captiva was launched in the beginning of this year but its newer version has been put on hold,” said Karl Slym,president and managing director,General Motors India.

The small car will be a premium vehicle in the segment and there are also plans to launch a car that runs on alternative fuel. “The LPG/ CNG version will also be available in the existing models and six cars are now under trial using bio-diesel. We are in discussions with various agencies in the country and are working closely on the testing of the vehicle and growing capabilities s of the crop for bio-diesel,” said Slym.

However,P Balendran,vice-president GM India,said no sales target has been fixed for this year. Admitting that the company was unable to meet its target of 80,000-90000 cars in 2008,he said the sales volume of 65,000 in 2008 against 60,000 in the previous year was good going,considering the global slowdown.

“Due to the global slowdown,the sales in auto industry will go flat or negative. This year has seen a slow start but now the market liquidity has improved. The availability of credit is a major restraint for Indian customers as 80-85 per cent people buy cars on finance.

The private banks are reluctant to give loans and this may have an impact on sales. Public sector banks are an option and we have entered into a tie-up with Bank of Baroda to provide finance to our customers,” he said.

GM India produces the Chevrolet Captive,Chevrolet Optra,Chevrolet Aveo,Chevrolet SR-V,Chevrolet Aveo U-VA,and Chevrolet Tavera in the country and it has a manufacturing facility in Halol,in Gujarat. It has also entered into an understanding with Central Institute of Mining and Fuel Research,which provides 12,000 litres of bio-diesel annually.