General Motors plans foray into C and D-class cities

Automobile manufacturer General Motors India has plans to expand its dealership network to the C and D-class cities in India.

Ankush Arora, vice-president (marketing, sales and after sales), GMI, told media persons at the unveiling of the Chevrolet Aveo that there is increased demand for GM vehicles across its model range from the C and D-class towns in India.

"While most of the new dealer outlets - about 80 per cent - will be extensions of our existing dealerships, the rest will be freshly appointed ones for these cities," said Arora, adding, the company may eventually enter the E-class cities as well.

Chevrolet Aveo will be available in four versions, 1.4E, 1.4L and 1.4LS and 1.6LT. While the 1.4E version will be the lowest-priced one among the new cars, at Rs 555,000, the topmost of the series, the 1.6LT will be priced at Rs 685,000.

Arora made it clear that the company will follow the "one country one price" norm for its pricing, as it will allow flexibility of advertising across the country as well as maintain the price details on the company's internet site. The only difference will be in markets, which have not yet adopted the VAT, he said.

Giving details about the Aveo model, Arora said that 35 per cent of the car is localised, which will increase to the maximum level of 68 per cent in six months time. "We will have to continue importing the body shell and power pack, which will come from GM's plant in Korea," he said.

Arora informed that General Motors has so far invested Rs 1,400 crore (Rs 14 billion) in its plant at Halol in Gujarat, of which Rs 100 crore is the investment for the Aveo line. "There are no immediate plans to bring in more investment," he added.Arora said that the company was committed to introducing two more models during the year. "One of them will be a premium hatchback and the other, a sportsback UVA," he said.

He said the company has decided to phase out its mid segment car Corsa but added that the existing users will continue to get service and spares support for the next ten years.

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