General Motors says electric Spark is ready

Amid apprehensions over the commercial success of hybrid automobiles in India, General Motors is gearing up to launch the electric version of its successful mini car, Spark.

GM has entered into an agreement with the Bangalore-based Reva for sharing the technology to produce the electric Spark.

“We have already worked on this car, and the first electric Spark has been tested on the road. We are planning to launch it in the current year,” said Karl Slym, president and managing director, GM India.

Though Reva could not get the required volumes due to various reasons including price, Slym is confident of making the new Spark variant a success.

“I would not call Reva a failure. But, there are various reasons. Companies should be willing to make such cars, the government should be willing to provide subsidy to the buyer to not pollute the environment, and the customer should be willing to buy it. But GM has some aggressive plans to make the electric Spark a success,” he said.

However, he refused to divulge the price tag of the new variant. “It will be competitively priced,” he said.

In this joint venture with Reva, GM would continue its basic platform in e-Spark. However, it would use the battery technology developed by Reva. The company is planning to offer two battery options - lead acid and lithium ion. Both the batteries are rechargeable, though the lithium-ion battery is the latest among the range.

Meanwhile, GM is also working on a plan to foray into the light commercial vehicle (LCV) sector. For this, the American company has joined hands with Shanghai Automotive Industry Corporation (SAIC). The first LCV from this partnership is likely to hit the road sometime in 2011. The company would also roll out a passenger car from the same portfolio in 2012.

“The agreement with Reva and the one with the Chinese company will add to our menu card. GM already has its own portfolio. The JVs will add to it,” Slym said.

GM has rolled out its Chevrolet Beat in three variants in the price band of Rs 3.34 lakh to Rs 3.94 lakh. The company has a target of selling about 60,000 units of Beat in a year.

For 2009, the company sold about 70,000 vehicles with the hatchback mini-car segment contributing about 49,000 units in sale. GM is expecting 50% growth in the current year.

“We are also focusing on localisation of the vehicles. We are already lining up the component suppliers. Beat is already 60% local, and it will increase to 90% shortly,” he said. The company is also readying a powertrain plant at Talegaon. The engine from this plant would go into Beat’s diesel version this year.