NEW DELHI, July 7: General Motors (GM) India is contemplating a diesel version of the `Opel Astra' in a year's time and a utility vehicle in 1999, its president and managing director Ronald G Nardi said.

"A diesel version of the Astra is currently undergoing tests. If it passes and maintains the quality level associated with GM cars, we will be able to introduce it by July 1998," Nardi said.

GM is also eyeing the utility vehicle segment, which saw a tremendous growth last year mainly due to the introduction of the Tata `Sumo'.This segment is poised for further growth with the Tatas introducing a new vehicle `Safari', experts feel.

"Before introducing any new car, the vehicle that we may launch will be in the utility segment," he said.

General Motors is the world's largest car manufacturer with a sales turnover of $168 billion (Rs 6,04,800 crore) with manufacturing operations in 43 countries.

GM, which has several brands like Chevorlet, Pontiac, Buick, Cadillac, Opel, Saab and Vauxhaull, sells around 8.3 million vehicles annually (compared with nearly four lakh cars sold in India).

Nardi said the company is also thinking in terms of introducing a car, which could be priced in between the luxury `Astra' car and the super-luxury Mercedes Benz.

General motors India is a 50:50 joint venture between General Motors Corporation and the CK Birla group of companies with a total investment of about Rs 300 crore.

The company has its manufacturing site at Halol in gujarat and currently manufactures only the `Opel Astra' car.

"There are opportunities for small cars, large cars and utility vehicles in the country and we have a long stable to choose from (for introducing any new vehicles here)," Nardi said.

The diesel `Astra' that runs in Europe would be suitable for Indian conditions and currently work is apace on that, he said."Even the engine will be modern and we have a test vehicle running now with a better air conditioner, different interior and packing," he said.

He, however, said, "We are not going to bring it in if it does not perform to our satisfaction".Nardi said it would take the American giant at least two-to-three years for introducing a small car in the country, but ruled out any chances of keeping the price as low as some of the local manufacturers.

On the utility vehicle, which can carry about seven people, Nardi said GM would not be able to price it below Rs seven lakh and added, "We will see what people can pay over the price of the existing utility vehicles".Last week Nardi ruled out chances of the American company taking majority stake in the joint venture saying the Birlas were in "good shape" and he saw few problems with the indian partner for financing future requirements.GM has set a target sale of 12,500 units in the current calendar year after putting nearly 6,000 vehicles on the roads till now."Last year our idea was just to get the plant started and we knew that the numbers would come automatically. We hope this year it would be a smooth sailing," he said.After having estabished its brand image as a premium luxury car manufacturer with top quality cars it will be easier for General Motors to introduce new models, he said. "We are thinking of indigenising the Astra from the present level of 50 per cent to 67 per cent by 1999." In this effort, G M will try to encourage its vendors in Europe to talk to various component manufacturers for setting up joint ventures.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.