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You can soon drive a Hummer

June 18, 2005 13:11 IST
Cadillac and Hummer may be on the Indian roads soon if General Motors India goes ahead with its plans.

While Cadillac serves the need of the luxury car buyers, Hummer is a niche special utility vehicle.

From being the vehicle used for military support during the 1991 Gulf war, the Hummer brand has come a long way and is making inroads as a lifestyle segment vehicle with civilian models such as Hummer H2 and H3.

"Indian market holds potential for cars like Cadillac and Hummer. GM would launch these vehicles in the country after necessary due diligence," Rajeev Chaba, the new managing director of General Motors India, said.

Cadillac will compete with the well-entrenched German brands like Mercedes-Benz, Audi and BMW. The market for this segment in India is about 3,000-4,000 units per year.

A car in this range is priced at Rs 25 lakh onwards with the top-end ones touching Rs 1 crore. In US, Hummer H2 is a favourite with the entertainment industry.

Cadillac is now going through a global revival but only one model, the CTS, is available for the right-hand drive markets.

Rolls-Royce has already re-entered the Indian car market with its Phantom early this year. Cadillac has excellent brand-recollection in India along with illustrious brands such as Rolls-Royce, Chaba pointed out.

At present, GMI sells 8,000 Opel and 30,000 Chevrolets in the country. Optra, Corsa and Taveda are its leading models.

"Starting next year, the company has plans to launch two new cars every year in the country. GM plans to increase the volumes of its vehicles to 50,000-80,000 units by the next 12-18 months,' he said.

GMI is also planning to enter the mini car segment and is open to green field as well as brown field expansion. "We are keen to acquire Daewoo's manufacturing facility in India. The matter between the government and the creditors should be resolved in another two months, which will be followed by bidding."

If acquired, it will take another 14 months for the renovation and making the facility ready for manufacture. "I will guarantee that if acquired, the cost of renovating the Daewoo facility will be more than its acquisition cost," he added.

Further, Chaba said GM plans to increase its sourcing of auto components from India to $1 billion in the next 3-4 years from the current $20 million.

BS Corporate Bureau