General Motors announced that it will launch its new mini compact global car in 2010. This car is being co developed by the automakers research and development facility in Bangalore along with its global facilities across the world.

GM also announced that it would launch the Chevy Volt -- its first electric car, in the Indian market next year. Apart from an additional investment of US $ 500 million to be invested for its various car models in the next seven years, the US maker has already invested US $ 1 billion in India.

The company's top brass also pointed out that India would become an export base for the company in the coming years as it increases the capacity of the newly commissioned car and engine plant in Talegoan, Maharashtra from 140,000 to 300,000 vehicles. But it ruled out an entry into the Rs 1 lakh car segment -- which was under scrutiny for some time by the US company.

Speaking to reporters in Delhi during the launch of a new model, Fritz Henderson, president and COO of General Motors, said: "We see a great potential in the Chevrolet brand and will continue to follow a two pronged strategy which includes adding new upgrades of the existing models and add on newer models in all segments of the Chevrolet stable."

Henderson also added that, over a period of seven years, GM would invest another US $ 500 million additionally in India for automation of the plants and new models, making India a viable market for exports.

On the possibility of GM taking on Tata's Nano in the Rs 1 lakh car segment, GM's president and managing director of India Karl Sim said: "We have a tripartite venture in China between GM, SAIC and Wuling which manufactures a cheap mini car priced less than US $ 5,000. But we have no plans to bring it into India."

Sim also said that the powertrain calibration and suspension of the mini global compact car has to be adapted to Indian conditions. GM already has the Spark and the Uva in the compact segment.

On the possibility of selling the Hummer -- a premium SUV (in which some Indian companies have also shown interest) Nick Reilly president GM, Asia Pacific said: "There are people interested, the sale talks are at a confidential stage and it is too early to disclose the potential buyer."

GM is also experimenting on a car which runs on Jetropha -- a bio-fuel in India and hopes to launch cars which run on this fuel as and when the availability of bio fuels improve in the country.

The US major also wants to reach a market share of 10 per cent in India by 2010 (currently it has a 4 per cent market share).