Struggling US carmaker General Motors said on Wednesday that its India activities are on track and will launch its luxury sedan, Cruze, followed by a small car, in the next financial year amid reports that it is on the verge of filing for bankruptcy.

"Our India plans remain intact and investments will continue as announced earlier. The company's marketing investments will be as per plan," General Motors India vice-president (marketing, sales and after-sales) Ankush Arora told PTI.

He said the company is on track to drive in its luxury sedan Cruze, expected to be priced in the range of Rs 11-15 lakh. The car, meant for the domestic market, would be introduced during June-July, 2009.

Also, the company plans to roll out a mini car from its Talegaon facility, which is currently under construction. The sedan could be produced either at Halol (Gujarat) or Talegaon itself.

He, however, declined to give details about the small car saying the company plans to launch it by the end of 2009 or early 2010.

Terming the news of its parent company in the US on the verge of filing for bankruptcy a 'speculative' one, he said: "Our global head has recently said that bankruptcy is not an option."

When asked about the slowdown in the automobile industry, Arora said: "The next two months are very challenging. This calender year, the industry is expected to achieve a single-digit growth of about 7 per cent."

GM India would, however, achieve a growth rate of about 20 per cent in this year, he added.

Image: A life-size foam model of the Chevy Cruze, an all new global compact car. | Photograph: Bill Pugliano/Getty Images

Text: PTI