With Tata’s runaway success with Nano and increasing demand for affordable small cars for middle-class Indians, General Motors India, the Indian subsidiary of world’s second largest car maker GM, has started the process of research and development (R&D) to make its mark in the small car segment of the country.

The company will work in partnership with its Chinese partner SAIC to come-out with the best possible route to make a low-cost fuel-efficient car for the Indian market. To reduce costs the company will do a major chunk of manufacturing input in India.  Tata Nano, the current ruler in the low-cost car segment will face stiff competition from this car.

The Automobile experts feel that after analyzing the response of the Indian buyers towards this small car, the company has plan to export this car to international markets mainly Europe and South Africa.

General Motors India, recently registered an impressive growth of 112% in the sales figure of June 2010. The number of units sold in June were 9,539 as against 4,492 units sold in June 2009. This impressive sales figure was backed by the sale of 3,415 units of Chevrolet Beat, 2,911 units of the Chevrolet Spark, 773 units of the Chevrolet Cruze, 1,423 units of the Chevrolet Tavera, 398 Units of Chevrolet Aveo, 387 units of Chevrolet Aveo U-VA, 139 units of the Chevrolet Captiva and 93 units of Chevrolet Optra.

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