General Motors to further ramp up Halol unit capacity

With three cars to be unleashed from its stable, General Motors, which is increasing its production capacity at its 45,000 sq mt plant at Halol from 60,000 to and 85,000 by year-end, may continue to press the accelerator for major expansion ramp up.

If the market response favourably to its three new cars, the world leader car manufacturer which has invested Rs 100 crore to increase its capacity to 85,000 units, could further increase its capacity.

"We are launching Chevrolet Optra SRV by June or July, Aveo U-VA in the next two months and a minicar by March next year. If the market responses are good then we may increase the capacity. We are working two shifts now, we may even go for three shifts, " P Balendran, VP general motors told Business Standard.

The Halol unit currently manufactures Chevrolet Optra, Chevrolet Tavera and Chevrolet Aveo.

The total investment at the Halol unit has touched Rs 14,000 crore since its inception.

Sources say that Aveo U-VA which will be rolled out in the next two months, was delayed for modifications to make it 1.2 litre to avail the excise duty in small cars.

Aveo will compete with Hyundai Getz and Maruti Swift while the 1 litre minicar, Chevrolet Spark will take on Hyundai Santro and Tata Indica, the source added.

This is the largest expansion of GM India's vehicles in the company's history

GM is also finalising the site for its second car plant in India, probably in Tamil Nadu and Maharashtra, for logistic reasons of ports facilities and existing vendors.

Balendran, however, said that both Aveo U-VA and Spark will be manufactured at the Halol unit.

The company registered sales of 3,662 vehicles registering a growth of 66 per cent growth in April 2006 from 2,214 in 2005 while Chevrolet brand grew at 82 per cent.