GM Plans Second Mini Car in India; Could Be Exported
March 17, 2008

NEW DELHI, India — General Motors said Monday it plans to build a second minicar in India, only a year after it launched its first one — the Chevrolet Spark — there, Dow Jones Newswires reported.

Dow Jones quoted GM’s president of Asia Pacific operations, Nick Reilly, saying: “We believe there is space for us to have another entry in the minicar segment in India.”

Reilly said the new minicar, which he did not identify, could be introduced within two years, could be exported from India and will be built at GM’s second plant in India. The new plant is just now gearing up for full production by the fourth quarter of this year. GM has invested $300 million in the plan to build 140,000 vehicles a year.

GM introduced the 1.0-liter gasoline-powered Spark in India in April 2007. GM produces and sells in India the Spark; the U-VA and Aveo hatchbacks; the Optra sedan; and Tavera sport-utility vehicle — at the Gujarat facility. It also sells the imported Captiva SUV.

Small cars, mostly hatchbacks with engines ranging from 0.8 liter to 1.6 liters and measuring up to 158 inches in length, make up three-quarters of the more than one million cars sold in India each year, Dow Jones reported. Suzuki leads the local market because it sells as many as five hatchbacks.

Photo: Chevrolet Spark

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