GM on the expansion scheme for its Halol plant
In a bid to launch five models of its platform, General Motors is investing $250 million for its Halol plant, said its MD. The new models come under the aegis of SAIC of which three will be passenger cars and two will be LCVs. The partnership with SAIC is now a two- decade old, and GM is choosing the Halol plant ideal for the new models for the good reason that Chevrolet Tavera is coming off there, he added. The new investment will see a release of 1 lakh annual units, an increase of 15000 units delivered currently. The increased production is to commence during the end of 2011, and the current status of this Halol facility is with the investment of Rs2000 crore manned by 1200 personnel. The facilities at Halol and Talegaon have two shifts each and the Halol will add one more shift for the production of new models. The Talegaon facility has the capacity of 140000 units, which includes Chevrolet Spark and Beat, which are the company’s largest selling cars. The Halol facility delivers Aveo, Tavera, Aveo-UA, Captiva and Cruze.
The new models, proposed under SAIC platform, will have two hatchbacks on the lines of Spark and Beat, and the third passenger car will be sedan like Aveo, said the VP for corporate affairs of GM. The LCV will be on the lines of Tata Ace and M&M’s Maxximo, on 1 tonne category. GM is aware that nearly 75% of cars sold in India are from compact segment and the market is too busy with more customers. The companies involved in this segment are Renault SA, Toyota Motor who are eager to enter this market.
GM is raising funds for the expansion plan from IDBI, SBI, Canara Bank, Punjab National Bank, he said. In addition there will be an engine plant at Maharastra with the capacity of 160000 units to commence from November this year. There will also be shift from liquefied petroleum gas to LNG for its facilities at Halol and Talegaon, under a three year tripartite pact with BP, Inox India(which involves in making cryogenic liquid storage and logistic tanks). GM’s target for this calendar year is 1 lakh units compared to 69500 units sold last year, courtesy economic revival. The growth rate of GM in August is 34% from the one achieved last year same period.