GM India to launch Alto challenger and sports coupe Camaro

28 Jan 2011

New Delhi: General Motors has said it is considering a variety of new products for the Indian market, which could include a rival to Maruti Suzuki's hot-seller, the Alto. It said it would try and throw up a challenge to the Alto by bringing in a product in partnership with its Chinese partner, Shanghai Automotive Industry Corporation (SAIC).

The Maruti Alto is India's largest-selling car with average monthly volumes of around 30,000 units.

The new car would likely be priced under Spark, which is currently GM's entry-level car model for India.

GM international operations president Tim Lee said SAIC would play a key role in the development of any low-cost car. SAIC is one of the top state-owned Chinese automakers and GM's JV partner for the emerging markets.

GM India, which has been operating in India for the last 14 years, has a small 4.6% market share. It sold 110,804 vehicles in 2010 (up from 69,579 in 2009) and plans to introduce six new vehicles in the next two years.

By way of stepping up its presence in the Indian market, General Motors may also introduce its iconic and budget-friendly, sports car, the Camaro. According to Lee, the company is going to introduce a right-hand drive for the two-door car. Though he did not reveal the tentative time period for the launch or the price of the car, it is expected to be priced in the range of Rs30 lakh plus, which would make it the company's most expensive offering.

In the US the Camaro base price starts at around $20,000 and goes up to $40,000 (or Rs18 lakh). But the model would attract an import duty of 110% since it is a completely built unit (CBU). Lee said that though the company would not sell a lot of Camaros in India but it would still work as a brand builder for the company attracting people to showrooms.

Last week GM India held a board meeting, chaired by Lee, where a ten-year growth plan has been unveiled.