General Motors is making a renewed attempt to penetrate the domestic compact car segment with the launch of Chevrolet U-VA in the premium hatchback segment. The model would compete against the likes of Suzuki Swift and Hyundai Getz.

The U-VA is based on the successful Chevrolet Aveo sedan platform, but with a smaller engine. The model will be available in three different variants, all with the same 1.2-litre petrol engine, and are priced similar to competing models.

The base model would retail at nearly Rs4 lakh in Delhi, while the higher variants would sell at Rs4.4 lakh and Rs4.8 lakh. The premium variant would come with power steering and power windows on all doors and would have an option for ABS. The car would initially have an indigenisation level of 50 per cent, the lowest in this segment, which would gradually go up to 55 per cent.

This is the second attempt by GM to build volumes through models in the compact car segment. Its earlier model, Opel Corsa Sail, was withdrawn after a poor response because of higher pricing and poor fuel economy. GM is also planning to launch the Chevrolet Spark, an upgraded version of the Daewoo Matiz, and is constructing a new plant in Maharashtra.

The Spark would compete against Hyundai Santro, Tata Indica, Suzuki Zen and Suzuki Wagon R. GM is targeting total sales of 2 lakh units per annum by the year 2010 and is banking its hopes in the small car segment.

The premium hatchback segment would see many new launches over the next couple of years. The first new launch is expected to be the Fiat Grande Punto by early next year by the JV between Fiat and Tata Motors. Tata Motors may position the next generation Indica in the premium segment and retain the current model for the lower segment.

Honda Motor has already announced a new plant and a small car model specifically designed for India, but that may take more than two years. Toyota is also getting serious about launching a small car in the country. Meanwhile Maruti would launch the diesel version of the hugely popular Swift anytime soon.