General Motors India: Cruzing along

Sometime in October, General Motors India will roll out the Chevrolet Cruze. It will be positioned between the upper end of the executive segment and the entry level of the premium segment. The range (petrol or diesel, automatic or manual transmission) will be priced between Rs 13.50 lakh and Rs 18.50 lakh.

“The Cruze will create an intermediate segment that involves luxury features found in premium car models at a lower price. The Cruze represents a brand new architecture of the Chevrolet brand,” says General Motors India Vice-president (sales and marketing) Ankush Arora.

General Motors India has a car in the executive segment, the Chevrolet Optra, but does not have any presence in the premium segment, though it does have a premium SUV in its portfolio, the Chevrolet Captiva. Its rivals in the executive segment are the Skoda Laura and Octavia and Toyota Corolla. Models like the Honda Accord and Skoda Superb make up the premium segment.

More than anything else, the launch of the Chevrolet Cruze is meant to demonstrate that the financial problems faced by its parent, General Motors, in the US have in no way impacted the Indian operations. In fact, General Motors India plans to launch a small car on the Beat platform sometime next year. More launches could follow. Incidentally, the controversy seems to have had little impact on sales in India. It sold close to 4,500 cars in June, which was not dramatically lower than around 4,600 in the same month of last year. It is hopeful of closing July with sales of 5,400 (July 2008 was 5,700).

The Cruze is built on a new platform and includes a next-generation power train. It was made available recently in Europe, Australia, China and West Asia. “The Cruze was introduced in China about two months ago and we have sold over 20,000 in this time. During the same period, we sold over 2,000 in Australia. We are seeing similar response in the West Asian and Latin American markets,” says Arora. Surprisingly, the Cruze will not be made available in the US markets until 2010. In India, it will be manufactured at the company’s Halol plant.