General Motors is planning to launch a new small car in India. It will compete with the Maruti 800 which is the most popular model in the country. The Maruti 800 is currently the cheapest car in India, and it was expecting rivalry only from Tata Nano in the near future. However, General Motors is planning massive expansion plans for its product portfolio in India. The company is already facing tough times back home in the US.
General Motors plans to occupy a larger market share in India and it will introduce its two new cars Chevrolet Cruze and another compact car priced under Spark which will be closer to the Maruti 800’s price in the market. The company has recently started its production at its second plant in Talegaon in Maharashtra. It further plans to invest $210 million for its plant that will manufacture engines, gearboxes and transmission.
According to the GM India President and MD, Karl Slym, the company has not deferred its investment plans for India. The company will roll out its compact from its Talegaon unit. However, there is no news on the actual pricing of the new compact car from the company.
