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GM-Suzuki to produce 'Asia car' in India

Byas Anand in Frankfurt

The US-based General Motor Corporation is planning to make India one of the production sites for its much-touted Asia car, which would be manufactured under a joint initiative with Suzuki Motor Corporation of Japan.

India figures among the five nations which are being explored as possible bases for the Asia car. The other nations include China, Indonesia, Thailand and Taiwan.

The vehicle would be positioned in the bottom-end or the small car segment of the passenger car market.

This was stated by Kevin E Wale, executive-in-charge, operations, General Motors (Asia-Pacific), on the sidelines of the Frankfurt Motor Show.

"This is as part of our initiative to develop and produce a car specially made for the Asian markets. We already have a strong relationship with Suzuki and wanted to take it further with the development of this new car," Wale said.

GM presently controls about ten per cent stake in Suzuki. He further stated that GM has no plans to further hike its stake in Suzuki beyond ten per cent.

Although both the partners have agreed to join hands for the project, the finer details on the nature of arrangement are yet to be worked out, he said. Besides, it is yet to be decided as to whose plant would be used in countries where both GM and Suzuki have separate subsidiaries, like in India.

In India, GM operates through a wholly owned subsidiary -- General Motors India Limited. Suzuki has a 50-50 joint venture with the government of India -- Maruti Udyog Limited.

"An existing facility of one of the manufacturers would be utilised. We are not looking at setting up a separate unit or venture for the purpose," Wale added.

Regarding the company's future plans for India, Wale said General Motors was very serious about the Indian market and is presently working towards introducing its second offering for the Indian roads -- the Corsa.

The Corsa would be offered in a four-door notchback version and is expected to hit the streets by the end of this calendar year. On the pricing and positioning of the car, he said, finer details are presently being worked out and a final decision on these would be made in a month's time.

"The final price tag would depend on the way competitors price their vehicles. Besides, we will take the market situation also into consideration while finalising the tag," Wale said.

GM expects the Corsa to be a money-spinner and is targetting rural and semi-urban markets.

GM India, it may be recalled, was floated as a 50-50 joint venture with the C K Birla group. However, earlier this year, GM bought out C K Birla's stake and converted the venture into a wholly-owned subsidiary.

UNI

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