NEW DELHI (AP) — General Motors Corp. plans to build its second minicar for the Indian market, a company executive said Monday.
''We believe there is space for us to have another entry in the minicar segment in India,'' Nick Reilly, president of GM Asia Pacific, told reporters at a press conference. The new car could be introduced within two years, he said.
Detroit-based GM introduced the Chevrolet Spark minicar in India in April 2007 in its first major attempt to enter the segment. Small cars — hatchbacks with engine capacities ranging from 0.8-liters to 1.6-liters and measuring up to 4 meters — comprise about three quarters of the more than 1 million cars sold in India each year.
Suzuki Motor Corp. leads the local market with as many as five hatchback models.
GM currently produces six Chevrolet models in India, including the Aveo hatchback, Optra sedan and Tavera sport-utility vehicle. It also sells the imported Captiva SUV.
The Chevrolet Spark introduced last year is a hatchback with a 1-liter gasoline engine. GM didn't specify which model the second minicar will be. It will GM's third hatchback for the Indian market.
Reilly said small hatchbacks will continue to comprise the bulk of the cars sold in India in the coming years because of their fuel efficiency.
The company is also considering exports of minicars from India, Reilly said, without elaborating.
The U.S. car company said it has no plans to make a low-cost car to compete with the Tata Nano.
Tata Motors Ltd. introduced the Nano earlier this year as the world's cheapest car. Tata said the US$2,500 (euro1,600) four-door subcompact will revolutionize the auto industry and bring car ownership to tens of millions of people.