General Motors India (GMI) on Friday unveiled 1.2 litre Chevrolet Aveo U-VA , a premium hatchback in three variants. The company also said it planned to launch a diesel version of Optra and re-packaged Daewoo Matiz as Spark next year. Chevrolet Aveo U-VA will be available from next week.
According to GMI President and Managing Director Rajeev Chaba, the company has plans to capture 10 per cent of the car market by 2010. "We hope to sell 2 lakh cars by 2010 from 37,000 expected this year. Aveo U-VA and Spark will play a major role in achieving the goal," he added.
He said the company had made certain changes in the car to suit Indian conditions. "The Aveo U-VA is a global product sold in Europe, North America and other parts of the Asia-Pacific. There were no plans to launch a diesel version of Aveo U-VA," he said. The company is also carrying out due diligence for a power train plant in India, which would be completed in the next three months.
"We are aggressively pricing the car to compete with Hyundai Getz and Maruti Swift. The base model carries a price tag of Rs 3.99 lakh (ex-showroom in the Capital). The other two versions LX and LT are available for Rs 4.39 lakh and Rs 4.79 lakh," Chaba said. He added that the car has a local content of less than 50 per cent, which the company plans to raise to about 55 per cent in the coming period.
This is the second attempt by the company in the premium hatchback segment after the failure of its Corsa Sail. "We have learnt our lessons and have tuned our strategies accordingly. We have priced the car aggressively," Chaba said.
General Motors has made efforts to keep spare part costs low as well as increase ground clearance of the vehicle. The company is offering an attractive warranty package, service and after-sales support to buyers of U-VA, which being a 1.2 litre petrol engine also enjoys reduced excise duty levels at 16 per cent against the prevailing 24 per cent for bigger cars.
Email Deepak Joshi: djoshi @hindustantimes.com