Code-named M300, the new car is in its final round of testing and will be displayed at the 2010 autoexpo in New Delhi in January.

Production in the Talegaon plant that now manufactures Chevrolet Spark will also be scaled up within three months to meet the market demand.

P Balendran, vice-president, GM India, said the new mini car that is undergoing testing at present, would also be exported to countries such as Bangladesh, Nepal, Bhutan and Sri Lanka.

“The benchmark pricing of the mini car is Rs 4 lakh but the final pricing and the volume of units produced will depend on the market condition. The demand of Spark cars was extremely well for the last three months. Now, the Talegaon plant works in single shift which will be made into two shifts within three months to increase the production,” he added.

GM India reported a 48.51 per cent jump in its sales at 7,654 units in September, the highest ever monthly sales registered by the company in the domestic market. Chevrolet Spark has registered a sale of 4,706 units, a two-fold jump recording the highest ever since its introduction. The September sales also comprised 1,329 units of multi-utility vehicle Chevrolet Tavera, 753 units of hatchback Aveo U-Va, 424 units of the sedan Chevrolet Aveo, 319 units of the luxury sedan Chevrolet Optra and 123 units of Chevrolet Captiva.

Balendran said that 20 per cent of the new car produced will be exported to the Asia-Pacific region. “The total units produced will depend on the market demand, but as per the plan 20 per cent will be exported by 2011,” he added.