New Delhi, June 5 Dismissing concerns over its prospects in the domestic market, General Motors India on Friday said that the year 2010 will be ‘big’ for the company.
The Indian subsidiary of the troubled US automaker said that with the launch of its new mini car and exports kicking in, next year would be significant. It also calmed fears of the company facing funding problems to meet its engine plant requirement.
“The year 2010 will be big for us when we bring in a high volume car and exports will also start by the end of next year,” said Mr Karl Slym, President and Managing Director, General Motors India, at the launch of LPG variant of Spark. This will cost Rs 3.52 lakh
Currently, Spark is the largest selling model in General Motors portfolio in the country. With the new car, the company expects to boost volumes further. The company claims it to be to a brand new model which is not made in any country and will be available in both petrol and diesel variant. The new small car is likely to be made in Korea, India and at one of their European plants.
To begin with, the company will export it to neighboring countries like Sri Lanka, Bhutan and Bangladesh where it already sells its existing models except Tavera. Mr Slym indicated that the company was eyeing Europe and major markets in Asia Pacific for exports.
“With the new compact car, exports could be 25 per cent of our domestic capacity,” he said.
This year capacity utilisation is expected to be at 30,000 units at Halol. Its installed capacity is 85,000 units.
At the Talegaon plant, it will produce around 40,000 units of the total capacity of 1.40 lakh units. Its Cruze sedan which will be built at Halol will contribute 3,000 units during the current calendar year after it is launched in September.
Source : Business Line