GM keen on Maruti stake

India8217;s cabinet committee on disinvestment considered a proposal last month to divest government equity in Maruti but did not reach a decision. Maruti Udyog Ltd, in which both the Indian government and Suzuki Motor Corp hold 50 per cent stakes, is India8217;s largest car maker, with a market share of a little over 50 per cent. Its models dominate the small car segment.

General Motors India is a wholly owned subsidiary of General Motors Corp. Swando said General Motors India was studying the market for introducing a small car and a large car in India and was expecting approvals for the projects from its parent company during the year. The small car will have a one litre engine, Swando said.

GM currently sells the Opel Corsa in the lower mid-size segment and the Opel Astra in the upper mid-size segment and has set a sales target of 10,500 cars for calendar 2000.

GM and Suzuki were working together to develop car models for Asia but GM already manufactured cars with one litre engines for the South American market, Swando said. Volumes in India8217;s car market will grow 15 per cent in 2000, he said. India8217;s car makers sold 573,813 cars in 1999.

Swando said General Motors India had succeeded in matching import expenditure with foreign exchange earnings from export of components, as required by India8217;s automobile policy. The Astra had an import content of 30 per cent and the Corsa about 50 per cent which will be cut to 30 per cent in three years, he said.