US based auto major General Motors (GM) is exploring possibilities of using the platform of soon-to-be launched multi-utility vehicle Enjoy for its eagerly awaited foray into the light commercial vehicle (LCV) segment in the country.
Lowell Paddock, president and managing director, GM India said, “We can use the Enjoy platform and elements of the MPV to roll out LCVs.” He, however, declined to specify the timeline for introduction of the two sub one-tonne models the company had earlier declared to launch in the country by early 2012.
GM India’s much-touted foray into the LCV segment has been delayed due to the company’s focus on rolling out passenger vehicles across the hatchback, sedan and UV space. While small car Sail and MPV Enjoy will hit roads around the festive season, the sedan will follow by the end of the year.
To cash in on the growth potential in the LCV segment, General Motors had invested close to Rs 1,125 crore to develop two LCVs in association with partner Shanghai Automotive Industrial Corporation (SAIC). The company had expanded capacity to manufacture 110,000 units from the earlier 85,000 units to roll out LCVs from the facility at Halol, Gujarat.
GM has been facing pressure on sales in a market subdued by high interest rates and fuel prices. Between April and August this year, the company's sales have declined by 19.89% to 36,030 units as compared to the corresponding period last year.
The company is overhauling the entire line-up of passenger cars in has on offer in the country to take on competition and woo back consumers. Besides, the three new models lined up for launch over the next three months, the company has already introduced refurbished versions of Tavera, Captiva and Cruze earlier this year. Work is on to upgrade small car Spark.
GM had stated intentions to treble sales to 300,000 units in India by 2013, is considering launching five new vehicles together with partner SAIC over the next fifteen months .
GM has a 50:50 joint-venture agreement with SAIC for running operations in all emerging markets in Asia. The GM-SAIC alliance operates eight joint-ventures in China and has also formed an investment company, General Motors SAIC Investment Limited, to facilitate expansion efforts.
