General Motors Indian arm has started research & development for its upcoming small car in the country. The company plans to harness its partner SAIC Motor Corp’s expertise in low cost manufacturing to make this project cost competitive and is considering venturing into the Rs. 2 lakh car segment by the end of next year. The company believes that equipment, vendor, tooling and other such expenses must be spread over vehicle sales to be able to develop a viable low-cost vehicle. GM plan to use low cost supply base in India and not import anything from China (SAIC’s home country). Thus the American car maker has already summoned its part suppliers about the job at hand in order to make a big impact in the Nano segment.

Source – DNA