Despite the Astra witnessing a major erosion in sales across the country, efforts are being made to localise the engine and transmission of the car by 2000, General Motor India Ltd associate vice-president (corporate affairs) P Balendran told UNI

here.

General Motor India is a wholly-owned subsidiary of GMC and is presently producing the mid-size sedan Opel Astra from its Halol plant near Baroda in Gujarat.

The Corsa, which is reported to sport a 1,300cc engine, would be rolled out with an initial local content level of 50 per cent, he said adding that details on the localisation schedule are presently being worked out.

``We are definitely planning to localise engines and transmissions (of Corsa). The specifics of the Corsa project are stillbeing worked out. Therefore, the time frame for localisation and other details will be worked out in due course of time.''

The company has already achieved 70 per cent local content level with the Astra and is now working towards locally producing the engine and transmission for the car in India. ``Some parts and components connected with the engine have already been localised and the process is on to localise the engines by 2000 and we are progressing well.'' However, Balendran refused to divulge details on the same.

General Motor Corporation, Balendran said, has also decided not to immediately address the export market with the Corsa. The foray into the export markets with the Corsa would commence only after meeting the requirements of the domestic market in India.

``We are concentrating on introducing the product in the Indian market first. Details (of the export plan) would be finalised only in due course of time,'' he added.

The Corsa is slated to hit the Indian roads by the last quarter of1999.

GMI was floated as a 50-50 venture between General Motors and the CK Birla Group. But recently, General Motors had purchased the entire stakeholding of the Birla Group. The decision to this effect was taken after the Birla Group decided to freeze further investments in the venture and declined to contribute to the Corsa project.

In February, the Foreign Investment Promotion Board had approved the buyout plan of General Motors for Rs 65 crore. It also allowed GM to bring in an additional capital of $20 million for introducing a new car model. The board, however, rejected the General Motors' application seeking royalty from General Motors India.

Meanwhile, company sources pointed out that GMI was chalking out a strategy to foray into the semi-urban cities and small towns with the `Corsa.'

The new strategy is aimed at improving its presence in every nook and corner of the country. ``Our present vehicle, the Opel Astra, is more of an urban and big city car. So, we will be using the Corsa to see thatthe company's rate of penetration is increased in the smaller towns.''

The markets are being categorised according to the population and average income. The idea is to initiate more competition in these areas where the disposable income generally comes from agricultural or business activity, the officials said. The Corsa would be positioned as the prime revenue spinning model for these markets.

``Today, we do not expect the disposable incomes in these towns to be so high to purchase an Astra but the Corsa would be the vehicle for them.''