Down, but not out: GM India outlines comeback with two new products

Auto major to launch Trailblazer SUV in 2015, Spin MPV in 2016

Two years after it previously launched a new product in the competitive Indian market, General Motors (GM) said on Monday it would roll out two new products to boost lagging volumes and its brand image. A full-size premium sports utility vehicle, Trailblazer, will be imported as fully-built units from Thailand this year, while premium multi-purpose vehicle Spin will be manufactured locally from 2016.

GM India, which was accused of ‘corporate fraud’ in 2013 by the government for fixing its Tavera MPVs to deliver false emissions data, has seen its market share drop to 2.07 per cent during the April-January period of FY15 from 3.3 per cent in FY13. The carmaker’s volumes are down 36 per cent to 44,210 units during April-December 2014-15, after falling eighth per cent to 80,890 units in the previous year.  

Arvind Saxena, president and managing director of GM India, said the new models and increased focus on exports would help the company improve capacity utilisation at its two domestic plants from 35 per cent and improve viability for both component vendors and its dealers. At present, it has an installed car production capacity of 170,000 units in Talegaon, Pune, and 110,000 units at Halol, Gujarat.

“This year, we would like to maintain our domestic volumes. That is the near-term plan. Simply launching new products does not guarantee success; we will be focusing on customer initiatives and after sales for long-term success,” he said. GM India had last launched the Sail sedan in February 2013. Since then, it has launched only minor face-lifts for its range of cars.

GM is also betting big on exports from India, especially for small car Beat, and possibly the Spin from next year. After starting exports in September 2014, the company has now set a target to export 19,000 units in 2015 and 40,000 in 2016.

Export destinations include 40 countries such as Mexico, Chile and some parts of Africa.

Trailblazer, which will be positioned above the Captiva SUV, will likely be powered by a 2.8-litre diesel engine, while Spin is expected to compete with the Honda Mobilio and be powered by a 1.5-litre petrol and a 1.3-litre diesel engine.

GM India, which has 247 sales outlets, is also reported to be planning a new range of compact SUVs and small car/sedan under a project ‘Amber’ from 2017-18.