General Motors aiming at Rs. 2 lakh car for India
GM India to launch an ultra-cheap car by 2011-12 According to reports in some parts of media, General Motors is exploring the feasibility of rolling out a global car, under US$ 4,500 ( approx Rs. 2 lakh), which may also make inroads into the Indian market. If the plans are finalized, GM India would be positioning the model below Spark and would be the most fuel-efficient low cost car in its portfolio, though no official comments have been made by the company.

It was reported earlier that the Indian arm of General Motors will roll out its new premium compact car from its new plant at Talegaon plant in Pune. The company has already shifted the production of Spark from its old facility at Halol in Gujarat to Talegaon. Now, industry sources claim that though GM India has no immediate plans for its entry-level low cost car, but if its launched, it will be rolled out from its Talegaon unit and would be catering to a number of emerging markets. The design inputs of the car are expected to be taken from India. The car may also be positioned in similar markets like India including Latin America, Eastern Europe, Africa and even possibly China.

Even though the Indian arm of the Detroit-based bankrupt company claims to be independent, media reports claim that it is facing some trouble with funding for its new engine manufacturing plant at Talegaon. It is to be mentioned that GMI needs to invest about US$ 200 million in this engine manufacturing facility but the financial institutions in India are wary of bankrolling GMI’s investments.

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