We have been in negotiation with creditors for acquisition of Daewoo facility to get the small car. Somehow that has got inordinately delayed. So we are looking at other alternatives quite seriously now, GM India president and managing director Aditya Vij said here.
The company, a subsidiary of the worlds biggest carmaker General Motors, is desperately looking for an entry into the small car category, which occupies around 80% of the market. Even as the company completed a due diligence of the Surajpur plant of Daewoo in August last year, there has been not much forward movement thereafter. Noting that the plant has become virtually junk, Mr Vij said, We will not wait for too long. It is already delayed. Our interest has also waned over time. And the issue between the government and creditors has not yet been resolved, he said. He said to maintain its growth strategy in India, the company has begun looking at alternatives. While not denying going in for a second car plant in case Daewoo deal failed to materialise, he said, If a small car is due, you need some basic capacity of between 60,000-80,000 units in addition.