Buoyed by an encouraging response to its recently launched Beat diesel across the country, General Motors is considering pushing the version across products in a big way.
The company is keen on introducing a diesel variant of Spark, which has not picked up as expected despite launch of its LPG version. Given the frequent interest rate hikes coupled with a direct impact on component pricing, GM believes diesel variants will give the necessary push, as far as Spark is concerned.
P Balendran, vice-president, GM India, said, ?We sold around 5,500 Beat diesel variants within five days of its launch last week. We want to replicate the success into other models, including Spark. Our Talegaon plant can produce diesel engine for Spark if necessary.? In the last one year, interest rates have gone up numerous times. ?And therefore, we believe diesel variants to benefit from the rate hikes,? he added.
?We have set a target to sell 4,500 Beat diesel variants a month as the demand for petrol version comes down owing to a lot of reasons, including high inflation and rising interest costs. We have been selling 2,200 units of petrol Beat a month and we see that the demand for diesel variant will shoot up sharply in the months to come.?
Of the projected sale of 140,000 units in 2011, GM hopes that the compact car segment will contribute 80% and the rest from other models. Of the 80%, GM expects contribution from Beat to be around 50% with contribution from diesel variant.
?We have lined up five more products before the end of 2012, including a hatchback, a sedan, a LCV from joint collaboration with SAIC Motor under Cheverolet brand and Tavera Europe IV version. We are not ruling out at least two products out of our collaboration with SAIC in 2012, including a LCV and a pick up. We will look at options on small cars from SAIC joint collaboration as well.?