Mumbai: Top automaker General Motors (GM) has announced the launch of its premium hatchback `Chevrolet Aveo U-VA', in the Mumbai market.

"The Aveo U-VA is a global product sold in Europe, North America and other parts of Asia. It has been re-engineered to meet specific needs of Indian consumers," GM president Rajeev Chaba said.

The vehicle, which would be sold at Rs4.21 lakh (ex-showroom) in Mumbai, would compete with Maruti and Hyundai, which dominate this segment.

Chhaba said to meet local preferences some parts of the vehicle were redesigned. While the ground clearance was increased to 188mm, suspension has been reinforced keeping in mind the local road conditions.

Aveo U-VA' would have an initial local content of 40 per cent, which would go up to 60 per cent soon Chaba said.
GMs' facility at Halol, Gujarat currently produces 60,000 vehicles annually and the capacity would be increased to 85,000 by April this year.

Of this, 70,000 would be a mix of the existing models of Optra, Tavera and Aevo and the yet-to-be launched 'Spark' that is likely to hit the market in April.

GM is setting up a new plant at Talegaon near Pune. The facility, expected to be operational by September 2008, will have an annual capacity of 1,40,000 vehicles. The company expects to manufacture a total of 2,25,000 units per annum once the second plant becomes operational.