US car maker General Motors has decided to call off its small car project in India. The company had earlier planned to launch a small car positioned below its Chevrolet Spark to compete with Tata Nano. However due to unsuitability of the project, the company has decided to cancel the small car project completely.
“It (small car) was under discussion when the Rs. 1 lakh car (Nano) came in. We have reached a decision point that it is not right for us. We did have a plan (to launch a smaller car than Spark), but no longer now. We have shelved the plans to get into that segment,” Karl Slym, GMI, President and MD, said.
“There is no decision now to go below the segment where the Spark is present and all future models in our portfolio in India will be positioned above this car,” he added.
The small car would have been positioned right below the Chevrolet Spark at a price point of Rs. 1.5 lakhs. There will be no car in Spark’s segment either and all new GM vehicles will be above that segment. However, GM might plonk in an 800cc motor inside the Spark to reduce its price considerably in order to ward off threat from Maruti Suzuki and Hyundai.
Slym declined to specify if the company was looking at introducing the Spark with a lower capacity, 800cc, engine. “Our power train plant can produce different engines; we will decide accordingly,” he said.
At present GM India’s flagship small car ‘Spark’ comes with a 1,000 cc engine in both petrol and LPG options. As per GMI’s website, the car is priced between Rs 3.01 lakh and Rs 4.31 lakh (ex-showroom, Delhi).
GM is expanding its capacity so as to produce CV’s by their SAIC their Chinese partner in India. The first, among a line up of 5 models will be introduced at the 2012 Auto Expo in Delhi.
Also see – New Chevrolet Spark 800cc
