To boost sales in India and other emerging markets, General Motors plans to build three cars based on a new platform, under a project codenamed ‘Amber’, reported The Economic Times.
The cars – a compact SUV, a compact sedan and a hatchback – will be launched in Mexico, Russia, Thailand, Brazil and India, among others.
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The Amber project, which will be designed in Europe and engineered in Brazil, has a global potential of 1m to 1.2m units, with India’s contribution expected to be around 150,000 units per year.
A person with knowledge of the project said: “With regards to India, the priority is on the compact SUV but the platform will also have a premium hatchback and an entry level sedan. The projects are likely to be launched in India and Brazil concurrently or within a matter of 6 months”.
The cars based on this platform are not projected to reach India before the first half of 2018.
On the Amber project, P Balendran, GM India vice president, said: “It is purely speculative and the company does not comment on speculation.”
Despite the introduction of new products – Sail and Enjoy – the company’s sales in India have deteriorated. In fiscal year 2014, GM India sold 80,000 units with a market share of around 3%, compared with 110,000 units and 4.18% in fiscal 2012.
Puneet Gupta, associate director, IHS Automotive, said: “We expect GM India to lose volumes and market share till the time they bring in new products. The pipeline seems dry for the next three to four years. Sail hatchback and sedan and Enjoy MPV are already struggling, it will be very difficult for the company to improve volumes further. They may have to look at other alternatives like the interiors of the country to sell products or look at exports to sustain volumes.”
On the company’s future, Balendran said GM India plans to launch upgraded versions of its existing products. He added: “We had already launched the new Beat, upgraded version of Cruze and Enjoy, despite the market being sluggish, the response to the products has been encouraging. GM should be able to grow in tandem with the market.”
Meanwhile, the company is taking several steps to increase sales in India. In order to improve overall ownership experience and customer satisfaction, it is working on network efficiency. Further, it has shifted its purchase arms to its R&D base in Bangalore for closer co-ordination between the teams. It has also launched a new service package called Chevrolet complete care programme, which provides low cost maintenance.
