General Motors India will launch its new compact small car, Chevrolet Beat, at the forthcoming Auto Expo in New Delhi in January. Currently, it has Spark and Aveo U-VA in the small car segment. The company has no plans to stop the sale of any existing models, but will repackage U-VA in the coming days and launch a low-end version of Captiva next year.

Powered by a 1.2-litre petrol engine, the Beat is expected to be priced in the Rs 4-5 lakh bracket. The company also plans to launch a diesel variant of the car next year. Beat is sold in other markets as the new Spark. To make the car suitable for Indian conditions, the suspensions and powertrain of the Korean model have been changed. The car is pitted against the Maruti Swift, Ritz and Hyundai i10 in the market.

"We made a mistake with the pricing of Spark in the market. But Beat will be priced competitively and the price will speak for the product," said Karl Slym, president, General Motors India. He added that GM's Talegaon plant in Maharashtra will primarily cater to the production of Beat, while the currently produced Spark from the plant will be shifted to the company's plant at Halol, Gujarat.

Further, Slym expects the company to touch the two-lakh unit mark by 2012 from 70,000 units this year. The company sees growth coming from its new launches, including the soon-to-be-launched Beat and the light commercial vehicles and passenger cars it plans to get from its Chinese JV, Shanghai Automotive Industry Corporation (SAIC).

"GM has of late gone overboard with offers on its products. The company should now re-think its pricing strategy and let the buyer bargain for a good deal," said an auto expert based in Chennai.

On the possibility of getting other GM brands to India, Slym said, "We plan to focus on the Chevrolet brand in the market. We have no time to think about other brands. However, the Cadillac brand has recognition in the Indian market."

In November, the company sold 7,118 units against 4,307 units in the same period last year. The November 2009 sales comprise 4,202 units of Chevrolet Spark, 1,264 units of Chevrolet Tavera, 524 units of Aveo U-Va, 412 units of Aveo, 518 units of Chevrolet Cruze, 114 units of Chevrolet Optra and 84 units of Chevrolet Captiva.