GM will Spark, come what may

Despite constraints,  promises to launch mini-car on schedule.

NEW DELHI: It seems nothing is going to stop General Motors (GM) from entering the small car market in India - not even the absence of adequate manufacturing capacity.

The US automobile major has decided to go ahead with the launch of its mini car, Spark, early next year, even as it is yet to take a decision on a second manufacturing plant.

The company has an existing facility at Hallol, Gujarat, which is used to manufacture Chevrolet Tavera, Chevrolet Optra and the newly launched Chevrolet SRV, and is already facing capacity constraints.

In fact, GM is busy expanding capacity at Hallol to 85,000 units per year on a three-shift basis by the end of the year to cater to the increasing demand for existing models. But capacity constraints appear to have been set aside in favour of launching Spark on schedule, early next year.

Earlier this year, GM had pulled out of the race for the manufacturing facility of the ailing Daewoo Motors India and has been scouting for a suitable site for setting up a manufacturing facility.