General Motors India has shelved plans to launch multi-purpose vehicle 'Spin' in India but announced plans to introduce all-new Chevrolet Beat Activ to cater to growing demand for SUVs in the country.
"General Motors will not proceed with the Chevrolet Spin MPV in India in 2017. Instead, it will continue to listen to its customers and shift its focus to growing segments, including SUVs," the company said in a statement today.
The company announced that the all-new Chevrolet Beat Activ soft-roader will go into production. The vehicle was introduced as a Chevrolet concept vehicle at the Auto Expo in February this year.
"There was an overwhelming response from our Indian stakeholders to the Beat Activ when we revealed it at the Auto Expo in Delhi. As a soft-roader, the vehicle is ready for any adventure or challenge, while its interior ensures the driver remains comfortable and connected," GM India President and Managing Director Kaher Kazem said.
The company had earlier announced plans to launch the Spin MPV in India next year.
General Motors India plans to launch at least five new Chevrolet models within the space of two years, including the new Trailblazer, new Beat, Essentia, new Cruze and Beat Activ in the country.
"These new Chevrolet vehicles clearly demonstrate we are listening to our customers and are being led by their desire for small cars with more content and choice. They were distinctly developed for the Indian market. However, there is no doubt they will have global appeal," Kazem said.
The company is exporting its various models to around 40 countries from India. In 2015, the company exported 21,000 vehicles to 40 countries, including Chile and Mexico. This year, GM expects a significant growth in exports, with an additional 50,000 units.
GM India's announcement of launching the Beat Activ comes at a time when SUVs are driving growth for car makers in the country.
Utility vehicle sales (including SUVs) in India grew by 35.88 per cent to 58,793 units in May while passenger car sales in the country declined marginally last month as some of the demand shifted from sedans to the UV segment.
However, multi-purpose vehicles from various auto makers have seen a tepid response from buyers in recent time.