General Motors India's (GM) much touted launch of its upcoming light commercial vehicle (LCV) is unlikely to see daylight in 2012. Unlike earlier announcements by the company of a first quarter launch in 2012, GM India's focus on launches of its mini hatchback Sail and other two models may push the LCV roll out to next year.
The LCVs from the GM and Shanghai Automotive Industries Corporation (SAIC) joint venture will be manufactured from the former's Halol plant in Gujarat.
Halol will reportedly make two LCVs chosen from the SAIC's portfolio which can include a sub one-tonne truck. The company has invested $250 million (roughly Rs 1200 crore) for the LCV launches.
"Our Halol plant is almost ready to roll out LCVs. However, the launch is unlikely to take place in 2012 as we are focusing on Sail and the other two models," said Lowell C Paddock, president and managing director, General Motors India, on the sidelines of the company's launch of Chevrolet Tavera Neo 3 BS IV MPV in Ahmedabad.
According to Paddock, the company is focusing on the launch of a mini hatchback in the sub Rs 5 lakh category Chevrolet Sail, a new version of Chevrolet Captiva and a new multi-purpose vehicle (MPV) in 2012.
With the auto industry already witnessing 80 per cent sales coming from diesel cars in India, GM India is planning to cash in on the trend by rolling out both diesel and petrol variants of the three passenger vehicles this year.
With GM India's only MPV Chevrolet Tavera earning an 18 per cent market share in the segment, the company is looking to increase the same with the launch of a new MPV this year.
While the company saw a mere 1.6 per cent growth last month and similar growth expected in March, P Balendran, vice president - corporate affairs, GM India said, "We are hopeful to second half of 2012 will see a higher growth."
Seconding his views, Sumit Sawhney, vice president - sales, marketing and aftersales, GM India said, "Despite an almost stagnant growth in the first quarter of 2012, the industry is set to grow by 10-12 per cent in the second half. Our growth will be double of what the industry does in the second half of 2012." In 2011, GM India sold around 111,000 units.
The company's Halol plant is currently witnessing a capacity expansion from 85,000 units per annum to 110,000 in near future.
Meanwhile, the GM-SAIC venture is also likely to roll out three passenger cars developed by the Chinese partner at a later date.
