General Motors India is trying to get the most out of GM’s joint venture with Chinese auto majors, Shanghai Automotive Industry Corporation (SAIC) and Wuling. GM India is already developing the GM-SAIC range of LCVs to be launched in India by 2011.
Now after SAIC acquiring 50% stake in General Motors India, GM India has access to the product line of GM, SAIC as well as the GM-SAIC-Wuling Automobile Company. The Chinese have their arsenal loaded with low-cost economical cars but they do not have a small car that can rival a Tata Nano. But GM-SAIC, it seems, has developed to an extent, a Nano rival.
Timothy E Lee’s [President (International Operations), GM] comment on Nano rival from GM -
We will look at every market segment and I wouldn’t rule out anything.
GM had earlier announced that it would begin production of its new entry-level car in its Talegaon plant in the first half of 2012. With a ‘potential Maruti Alto-slayer‘ Chevrolet Spark 800cc on the cards and the successful Beat, GM India has space only for a lower entry level car in its line up.
The new small car can be expected to sport the Chevrolet badge and carry GM Chevrolet’s new design theme as found in the Chevrolet Cruze and Beat. Surely the new entry level car can’t beat the Nano if has got the looks alone, it needs to offer refinement and reliability which are the Nano’s clear weaknesses. And if a GM can plonk in a diesel motor, the small car could do deadly business.
With Tata Nano’s fully operational Sanand plant producing a Nano every minute and the very potent Nissan-Renault-Bajaj low cost car in the works, GM-SAIC better be very serious about their new small car.
Source: Economictimes
The “Small car” fever is gaining momemtum in a vigorous manner. The one thing that the “Car wala’s” are missing out on is the price tag placement. The overly priced Maruti Alto as well as the GM Spark are the ones who would be suffering the most. The Hyundai H800 is a great idea, but the weight of the price tag of the H800 will decide the fate of the Alto as well as Spark. The 800cc spark might be successful to put some sort of resistance to the onslaught by keeping the price tag a middle-class-friendly one. The Maruti Cervo will have a hard time fiding its place on the table with the arch rivals Hyundai and the ambitious GM concentrating on the hunt!!!
[...] will take on the Suzuki Alto with a new small car that will slot in under the Spark. It is expected to have a 800cc petrol engine producing about [...]