Autoblog

General Motors can claim about three percent of the car market in India, and it wants more. Tata's $2,500 Nano will still be the lowest priced new car in the world, but GM wants to offer something less expensive than its $7,350 Spark for Indian buyers. Group Vice President David Reilly points out that while a sub-Spark would be inexpensive, competing directly with the Nano is not something GM intends to do. If a bargain basement GM were developed, it could be leveraged in other markets besides India – it seems feasible that it'd be easily ported to the also-emergent Chinese market.

Three quarters of cars sold in India are small vehicles, and if the General can ratchet up its market share with a new model, the gains in other new markets with explosive growth could help further offset the sluggish performance of sales in the United States. To help achieve that goal, another manufacturing plant is currently underway in Pune, and should be fully up and running by the end of this year. There are also plans for an engine plant in India, though no details are forthcoming yet.

[Source: Automotive News - sub. req'd]

Tata Motors has disclosed that it is working with General Electric's plastics division to develop solutions for its forthcoming ultra-low cost small car.

Widely referred to in India as the "Rs 1-lakh" (100,000 rupees) car, the Tata project could be a breakthrough product for the company, with potential domestic sales of 1 million units per year. The four-door, rear-engine car will sell for only $2,200 - less than half the price of current entry level cars in the Indian market.

Tata chairman Ratan Tata has stated that the small car will make extensive use of plastics for the body, replacing welding with adhesives to decrease assembly costs. In an effort to cut down on distribution costs, the company is considering shipping modular car kits to small, local business units combining assembly, sales and service under one roof.

GE plastics are already in widespread use by automakers, primarily with a view to reducing weight (thereby increasing fuel efficiency). The Smart ForTwo makes extensive use of plastic body components, and BMW's 6-Series uses GE plastic front fenders.

[Sources: Reuters, Hindu Business Online, GE PLastics]