GM India plans to add three new small cars to its portfolio to regain its market position

The Indian subsidiary of US-based car manufacturer, General Motors (GM) is planning to introduce three new models in the Indian car market in 2012. This is an attempt to revamp its hatchback profile and boost the low sales volumes in the national circuit.

GM India, a joint-venture between the US automotive giant and SAIC, China is planning to introduce its Sail hatchback and sedan combo to replace the outdated Aveo UV-A hatchback and Aveo notchback. During the Q3 of 2012, the company also plans to launch a light commercial vehicle under the brand name of Enjoy.

GM will also offer a face-lifted variant of its compact car, Spark with the incorporation of new designs and features. The car will be launched around Diwali as the model has reported a steep dip of 78 per cent with minuscule sales figures of just 1,541 units in the first two months of this FY. In the same period the American car maker also witnessed a fall in the total sales which stood at 13,978 cars marking a dip of 24 per cent.

President and Managing Director (MD), GM India, Lowell Paddock, said, "We are looking at dismantling our older products by introducing new cars to bring excitement into the market. We would be targeting the premium hatchback and small sedan market with Sail brand and bring both diesel and petrol offering to cater to larger group of customers."

GM launched the refreshed diesel variant of Cruze, its premium sedan on June 27, 2012 with a price tag of Rs. 13.85-15.67 lacs (ex-showroom price in Delhi). This new launch packs a 2.0 litres diesel powertrain unit which comes mated with a 6-speed manual and automatic transmission. The Cruze is the best selling car of the car maker in over 140 countries and is the segment leader in India after the Corolla Altis.

Paddock said, "The car has received a good response in India since its launch in 2009. We have sold over 20,000 units of Cruze and the model comes with new re-worked engine and transmission with increase power and accelerating for discerning Indian car buyer."

A new model of Sports Utility Vehicle, Captiva was also launched by GM India on June 26, 2012. The new SUV comes with an ex-showroom price tag of Rs. 18.74 lacs - Rs. 24.59 lacs in Delhi. The premium SUV comes with a 2.2-litre diesel powertrain coupled with a 6-speed automatic transmission unit. According to the industry analysts, if the car maker wants to withstand the tough market conditions, it will have to refurbish itself.