GM to start trial Production of LCV's at Halol post Diwali

Fresh out of a labour strike, General Motors India's (GM) Halol plant is gearing up to start trial production of its upcoming light commercial vehicles (LCVs) after Diwali in October. The LCVs from the GM and Shanghai Automotive Industries Corporation (SAIC) joint venture are likely to hit the markets in the first quarter of next year.

"Our expansion at the plant is on track and the LCVs will roll out sometime in the end of this year or first quarter of next year. We are expanding the capacity from 85,000 units per annum to 100,000 units per annum. The strike has not had any impact on our expansion or launch plans.", said P Balendran, vice president, corporate affairs, GM India.

A worker at the Halol plant informed that work on the new press shop is underway, and that trial production of LCVs will start post Diwali. At present the plant is making 170-180 cars per day in two shifts. GM makes the sports utility vehicle Tavera, hatchback Aveo-UVA, sedan Aveo and Cruze at Halol.

Halol will make two LCVs chosen from the SAIC's portfolio which can include a sub one-tonne truck. The company has invested $250 million (Rs 1,125 crore) for the LCV launches.

Labourers at GM's Halol plant went on strike twice within a gap of five months, first time in October 2010 and then in March 2011. While the former strike was resolved promptly within four days after the company agreed to a revision in workers' wages, the second strike spearheaded by the INTUC lasted six weeks. Between March 16 to May 5 production at the plant was hit as close to 200 workers chose to stay away from work.

The GM-SAIC venture is also likely to roll out three passenger cars developed by the Chinese partner at a later date. Around three passenger car models developed by SAIC has been short-listed. The commercial vehicle market in India is expected to clock at least 1.28 million units this year at the current growth rate. The LCV segment is growing at 25 per cent annually and market size is pegged at over 2.8 lakh units.