GM to launch low cost small car in India

General Motors India is mulling over to roll out a compact car which will be priced around Rs 2 lakh. The car will be available globally. News reports confirmed that the car will be developed in India and exported across the globe. GM Group Vice-President Nick Reilly said that the car will be positioned below the Spark, the mini car. He clarified that it will not be very similar to Tata's Nano. Reilly also added that it will be totally developed in India and this will be the cheapest car globally.
The company plans to increase local content on its India-made cars to make them more competitive on the price front. Reilly added that news of the parent going bankrupt had impacted GM's sales in India while also making it difficult to raise money from financial institutions to fund its expansion plans. Reilly added that while components can be procured at 'good value' and cheaply, GM's own upcoming engine plant could make the price attractive to serve other markets. Therefore, a global growth in demand for small cars will give India an opportunity.