News GM to Go Diesel Globally, Riding on Indian Facility Driven by the robust demand for diesel vehicles in the Indian market, the US-based auto major, General Motors, is working on developing diesel engines for the range of vehicles lined up for launch in the country; the capability for which will then find its way to other diesel-intensive markets globally. The company, which has already introduced a diesel version of small car Beat in mid-2011, is looking at introducing diesel variants of premium hatchback Sail and the new multi-purpose vehicle later in the year. The diesel engine technology for these vehicles has been developed by the car maker in India, and will later be made available to markets in North and South Africa to begin with. Lowell Paddock, President & Managing Director, General Motors India, said, “The diesel development carried out on our future Sail and MPV programmes will certainly support entry into markets outside India where consumers have a strong preference for diesel engines.” Though no destinations have been finalized for exporting diesel technology from India, company executives indicated that markets in North and South Africa would be
considered initially. While the company does not have any plans to manufacture the 1.0 litre diesel engine for the Beat elsewhere in the world, no final call has been taken as to whether diesel engines for the Sail and the MPV will be manufactured exclusively in India. The 1.0 litre diesel engine for the Beat (the company's smallest diesel engine globally) is manufactured at GM's plant in Talegaon, Maharashtra. The capability for diesel engines is being developed by GM's technical center in Bangalore which currently has 2,100 employees. The company has five engineering centers, four design centers and nine satellite research and development facilities within GM International Operations. The technical center India in Bangalore is a medium-sized engineering operation which specializes in tailoring vehicles for the Indian market while also undertaking engineering work for GM globally, P. Balendran, Vice-President (corporate affairs), said. “Diesel vehicles constitute around 42-45 percent of overall passenger vehicle sales today. But wherever, petrol and diesel variants are both available, 80 percent of sales come from the diesel option. If I talk about the Beat alone, diesel sales used to be 40 percent earlier, now it has gone up to 80 percent. It has thus become important to develop the capability.” Industry estimates say diesel variants accounted for 28 percent of passenger vehicle sales in the last financial year. With petrol prices rising five times in the current financial year, the differential between the two fuels now stand at Rs. 25.51 per litre, up from Rs. 10 in April 2010, making an increasing number of consumers opt for diesel cars. +
“With local manufacturing and long-term commitment, we aim to provide a quality product that meets this growing demand and brings us closer to our aim of attaining a market leadership position,” he said. Kevin Thieneman, country manager, (India, Asean & China) added that India would make significant investments over the next several decades to build its infrastructure and support higher levels of urbanization. “This facility, our fourth manufacturing operation in India, positions us to meet industry growth and enables us to better serve our customers with the broadest range of products in the industry,” he said. + INDO -US BUSINESS
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