General Motors lines up big India plans, to launch 7-8 new models

General Motors India is planning to launch up to eight new models over the next 5-6 years in the country as it looks to increase its share in the domestic auto market.

The company has already lined up launches of three cars in the later half of 2012.

The hatchback version of the Sail U-VA will be introduced by the end of October or early November, to be followed by the sedan later in December. The multi-purpose vehicle Enjoy will be launched by 2012-end.

"Lots of new models are coming up for the Indian market. We are discussing about 7-8 models over the next 5-6 years," General Motors (GM) India Vice President (Manufacturing) Rakesh Mohan Sabbarwal said.

He, however, declined to share details such as whether these will be small cars or sedans or sports utility vehicles.

The company is also considering to double the existing production capacity of the Talegaon plant in Maharashtra in order to roll out and meet the demand of its new models.

"We are currently in discussion for ramping up the capacity. In the second phase of expansion, the capacity of the Talegaon plant can be doubled, but nothing has been decided yet," Sabbarwal said.

The 300-acre Talegaon plant currently has an installed production capacity of 1.4 lakh units, while the Halol unit in Gujarat can roll out 85,000 units every year.

Besides, the India unit of General Motors is in discussions with its parent to export small diesel engines from India.

"We have received requests from some of GM's operations in other countries to supply powertrains from here... We are under discussion," Sabbarwal said.

General Motors India has received requests to supply 1.0 litre and 1.3 litre diesel engines, which are currently manufactured at the Talegaon plant, he added.

The engine plant, which was set up at an investment of $230 million, has an initial capacity to produce 1.6 lakh units annually.

Besides, the company also sources components from India for its overseas operations and has awarded contracts worth $500 million. It plans increase the sourcing of components to $1 billion from India in the next two years.

With inputs from PTI