Saturday, October 16, 2010

GM to Enter LCV Business in India

General Motors is all set to enter the rapidly growing Indian light commercial vehicle (LCV) market and will launch cargo and passenger versions by early 2012.

GM will use its Chinese joint venture with Shanghai Automotive Industry Corporation (SAIC) to enter the segment. "Yes, we are working very aggressively for the launch of commercial vehicles in India and GM hopes to corner sizeable numbers in the market soon after their launch," GM India President Karl Slym told TOI.

"The Halol facility will be the main hub for these commercial vehicles that we plan to offer with diesel and alternate fuels options. We are investing Rs 250 crore at Halol (Gujarat) and will increase the production capacity there to 100,000 vehicles, most of which will be used for commercial vehicles," Slym said. The pick-ups will have around one-tonne payload capacity, while the vans (passenger carriers) will be 5-10 seaters. "The diesel engines on these will be below 1.5 litres and these would come up from our power train facility at Talegaon," Slym said.

To take on Tata Motors' Ace, the company has decided to set up a separate sales network for the LCV business and will not tap into its car sales network for this.

"We have consciously decided for a separate sales network as the customer profile for the LCVs will be different to a regular car customer. We understand that it is important to have a sizeable network before we start LCV sales and plan to have at least 100 dealerships at the time of the launch," Slym said.

TOI

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