Financial Daily from THE HINDU group of publications
Thursday, Apr 22, 2004
Financial Daily from THE HINDU group of publications Thursday, Apr 22, 2004 |
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Corporate
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Announcements GM plans to launch six Tavera variants S. Muralidhar
Chennai , April 21 GENERAL Motors India (GMI) will be launching six variants of the Chevrolet Tavera, its new multi-utility passenger vehicle. The entry level variant of the Tavera, which is scheduled to be rolled out by mid-May, will be priced as low as Rs 6 lakh and the other variants will be positioned at various price points all the way up to Rs 9 lakh. With its focus clearly on aggressive pricing for the Tavera, GMI has been working towards keeping the vehicle's cost of production low. Towards this end, the Chevrolet Tavera will have more than 85 per cent localised content even at the time of its launch. By the end of this year, GMI is expecting to achieve more than 93 per cent localisation of component sourcing. Confirming the Tavera's launch and pricing plans Mr Rajeev Chaba, Chief Operating Officer (COO) of GMI said: "The company is looking at offering the aspiring MUV and sports utility buyer a compelling value proposition in a number of price points." "Though the company will largely target the individual car buyer, the lower end variants and the higher seating capacity variants will be targeted for sale to fleet and taxi owners," he said. The six Tavera variants will also be split in terms of seating capacities and will, as a result, be classified as 8, 9 or 10 passenger carriers. All the six variants of the Chevrolet Tavera will sport the 2.5 litre Isuzu diesel engine that will be manufactured at Hindustan Motor's Pithampur plant. GMI is not looking at the possibility of launching a petrol-driven version of the Tavera. Company officials claim that it will be at least 15 to 20 per cent more fuel-efficient, while still being a shade more powerful. This Isuzu engine is rated to generate a maximum power of 80 bhp. In comparison, the Toyota Qualis engine puts out a maximum power of 76 bhp. GMI is targeting sales of 25,000 units per annum of the Chevrolet Tavera. This year, the company is hoping to sell about 10,000 Taveras, of which only 20 per cent is expected to come from the taxi and fleet segment of the market. Mr Chaba added that the sales targets for the Tavera are conservative estimates and that it has been necessitated by the capacity constraints that the company is facing at its plant in Halol, near Baroda. GMI's capacity constraint is largely at the paint shop in its assembly plant. For ramping up its production in a phased manner during the next two years, the company is increasing the capacity of its paint shop and will also get into a three-shift production schedule later this fiscal. For the current calendar year, GMI is expected to sell over 29,000 vehicles. `GM's largest investment'
THE launch of the Chevrolet Tavera will be a major milestone for GMI and the Chevrolet brand. The over $90-million Tavera project is as yet the largest investment and one of the most ambitious for the company. As a result, GM is betting on the Chevrolet Tavera's price, value and cost of ownership equation to make the product attractive to prospective buyers. The company is also in the midst of an unprecedented dealer expansion and retooling exercise, again to increase market reach and penetration for the Tavera. GMI is expected to announce a zero maintenance service holiday and the lowest cost of a full service as part of the plan to keep running costs low. GMI has also launched the `GM Difference' dealership standard upgradation programme in preparation for the launch of the Tavera. The dealership facilities upgradation has been on since the Chevrolet brand was first launched with the roll out of the Optra. GM Difference is a retailer skill development programme that is expected to improve back-end processes and the customer interface for the company's dealers. The company's dealership plans also include the doubling of service outlets to over 91 locations across the country by the end of this year.
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