It cannot be erased out of the pages of auto world history. General Motors has the credit of delivering its 100001 units of Spark [images]. The feat encouraged the company to invest $50 million for the expansion activities spread over next two years. Further there will be an increased production in its Halol facility- from the existing 85000 units to 1.25 units. In addition there will be a new launch of LCV during the next fiscal year. This initiates the extended capacity of ancillary industrial supplier base in Gujarat- from the current 172.
GM is in the form of awarding some $500 million worth components from the domestic suppliers and $1 billion for its global operations. The expansion will be focused on Chevrolet models which have the wait period of two months. The demand for this model is on the increase from the last September. Moreover, Halol will get the third shift soon with the personnel strength added by 200. GM is on the verge of capitalizing on the demand for its popular models – Spark and Tavera [images]- followed by its latest Beat [images](which sells 5000 units a month and is to hit the 1 lakh mark next few months).
The entire car market has the share of 10 lakh (out of the 14 lakh cars sold last year). GM has the niche of launching its other premier models – Aveo and e-Spark- during the end of this year. The company is seeking a relaxation from the Gujarat government for the electric version of Spark, on the lines of Delhi government(29.5% subsidy). Halol facility is making 250 cars a day by working 26 days in a month. The assembling activity is in full swing in this facility for Cruze [images], Optra [images], Aveo [images], U-Va [images] and Spark. Tavera forms the major share among this volume while Spark is made from both Halol and Talegaon plants. Halol plant takes care of assembling all the cars except Beat.
GM is happy with the sale volume despite the increased price out of increased output costs and Euro-IV norms. The company is aiming to sell about 1.20 lakh cars this year against 70000 units shelled out in the fiscal of 2009-10. The export projection for the next year is set at an increase of 20%, mainly formed by LCVs and small cars like Spark and Beat. The countries marked for the export are Asia and the Pacific region. GM is in deal in countries of Srilanka, Nepal and Bangladesh.