The American car major gears up to launch new products and tap demand in segments where it has inadequate or no presence at all.
New car models bring more customers into showrooms. That’s what General Motors hopes its Sail U-VA hatchback will do when it hits showrooms across the country next month. Starting with the Sail, the carmaker is looking to plug gaps in the passenger vehicle market where it either doesn’t have a presence, or has a weak presence in. The new car will replace the Aveo U-VA, which couldn’t compete well against the likes of the Maruti Swift and the Hyundai i20.
According to GM India, one of the reasons was the lack of a diesel version. Perhaps that’s the reason why the GM team worked extra hard to advance the launch of the diesel option which, otherwise, would have been launched a couple of months later than the petrol version.
“We didn’t have a diesel to offer, and we have taken care of that. We have also added a vehicle that is more suited to the overall driving environment here than in the past. It thus gives us a legitimate presence in a growing segment,” says Lowell Paddock, GM India’s managing director and president.
The Sail U-VA, to be available in petrol and diesel fuel options, is expected to be priced between Rs 4.20-6.5 lakh. The petrol Sail has a 1.2-litre (85bhp) engine with claimed fuel efficiency of 18.2kpl, while the diesel version is powered by a 1.3-litre (77bhp) engine with claimed fuel efficiency of 22.1kpl.
SAIC appeal
The Sail is the first product for this market from GM India’s co-owner Shanghai Automotive Industry Corporation’s (SAIC) stable. The model, designed ‘for non-Western growing markets’ was first launched in January 2010. GM India is hoping that the car, which reached the top of its segment in China with sales of 25,000 units in a month, and is leading its segments in markets like Chile and Equador, will be able to achieve success here as well. There have been tweaks in various areas of the car to prepare it for India. For example, the timing chain has been reinforced and the air-conditioner’s compressor has been upgraded for India. The Sail’s fuel tank is located below the middle of the vehicle. “This helps us in offering a flat rear floor with storage space below the passenger seat,” says Ravi S Desai, VP – engineering, GM India. Engineers from GM’s technical centres in Germany, Italy, China and Bangalore collaborated on the project. According to the company, the team of Indian engineers tested the car for nearly a million kilometres.
The next model from SAIC, to be called the Chevrolet Enjoy, will help GM India enter the growing MPV segment. “We think the Enjoy is going to hit a home-run in that segment. It is going to have a combination of flexibility, affordability and it's going to have the SDE (small diesel engine). So I think it is going to have all the ingredients to strike into a corner of the segment where nobody is right now,” says Paddock. GM, which has a market share of only three percent in India, will revamp its model line-up with a mix of new products from GM’s global portfolio, its partner’s model line-up and “some vehicles that are unique to India, like the Tavera.”
New products from GM’s global portfolio
One of the models GM is looking at for an India launch is the Chevrolet Trax. This compact SUV could compete with the likes of Ford’s EcoSport which is due for launch early next year. “Trust me, we want to look at all the global GM products and see what makes sense here,” says Paddock.
Apart from products in the mainstream market, GM India is keen to have a ‘halo’ product in its portfolio. Earlier, the company was considering the Hummer for its halo product, but the business was sold off. The Camaro that GM showcased at the Auto Expo 2012 is a strong candidate. “We are debating at the moment if the vehicle will have a right-hand drive or not, as this is the key requirement. It’s not going to be dieselised because it is not part of the mandate. Whether we ultimately do it or not I can’t say now but it would be good to have a top-of-the-line product which symbolises Chevy in India,” says Paddock.
While a head-turning model like the Camaro may be important to boost GM’s image in India, the entry level Spark model is also important as a volume driver. The car will see a refreshed version in a few weeks from now.
Aiming for improved consumer connect
New models aside, GM India’s focus is to further upgrade its marketing and aftersales services to build a better connect with consumers. The Internet is one area of activity. “You will see a lot of interaction on the web because that is the way customers are going today, moving away from a very traditional form of interaction,” says Paddock. The other area is on the brick-and- mortar space. GM India is looking at setting up express service centres in key markets. Paddock says, “You will see us doing a lot of quick service type
of arrangements so that we might, for example, in a dense city like Bangalore have a facility that is designed only for quick service.”
With new products and added focus on aftersales support, GM India is stepping up its activities. It will need to as the market conditions are not very conducive for growth. The latest revised industry growth projections by SIAM say so. The passenger car segment is estimated to grow a meagre one to three percent during this fiscal.
GM India sold 111,510 units in 2011, a marginal growth against the 110,804 units sold in 2010. With new models and a better presence in the diesel vehicle market, the carmaker has the potential to outgrow the market.
SUMANTRA BAROOAH