Rajeev Chaba, the newly appointed new president and managing director of General Motors India, who takes over from Aditya Vij on June 1, said, "Having a mini car in our portfolio is going to be pivotal in achieving the target." He added, "We are planning to launch two new cars in India each year beginning from 2006 and are targeting to sell about 160,000 cars a year by 2007-08."

He said GMI was considering buying out Daewoo India's assets in Surajpur but would do so after Arcel, the special purpose vehicle created for the sale takes a decision. However, he said that the deterioration of assets of the Daewoo plant over the last two years had made it a less attractive proposition.

"If the deal does not work out, we have greenfield and brownfield options available," he said.

He said GM was committed to the Indian market and looks at India as a very important and strategic base. According to him the company has placed auto components orders worth $120 million with its vendors in India and the target in the next five years is to increase this to $1 billion. The company is also planning to double the headcount at its R&D centre in Bangalore by the end of this year.

GMI recently increased the capacity of its plant in Hallol, in Gujarat to 60,000 units and the company said that further investments have been made to take up the capacity to 80,000 by June next year.

"Our target is to introduce two new cars every year, and in the automobile industry putting up a new line costs between Rs100 to Rs150 crore," he said.

Chaba said that even though the company was facing problems in the North American market, it was totally committed to expanding its base in India.

While not revealing details about other car models General Motors to be introduced in India Chaba said the company might launch a model in the large hatchback segment (such as the Aveo) and a sports utility vehicle with high localisation content.

He said the company may even look at importing premium models such as Cadillac and the Hummer in the future. However, "At the moment we are looking at giving the Opel Corsa models, including the Corsa Sail, a facelift," he said.

He said GMI will decide on buying assets of the bankrupt Daewoo Motors India within two months, and that the company may drive ahead with its alternative plans if the Daewoo sale gets further delayed.