Speaking at the launch of the Opel Astra diesel model, General Motors India (GMI) president and managing director Richard C Swando indicated that thinking was on in this direction but a final decision had not been yet taken and all options were being explored.

The sharp increase in the import duty for engines is forcing car manufacturers to import the components (which have much lower import duty) and assemble them within the country. By this, they can cut down costs substantially.

Swando, however, categorically ruled out any tie-up between HM and GMI (where HM's promoter CK Birla is also a stake-holder) in order to preempt possible cannibalisation of Opel's market share by Lancer.

Mitsubishi wanted to enter India with HM and HM was open and frank.``Our relationship with HM is long and strong and their tie-up with Mitsubishi will not shadow our relationship,'' he said. He also added that General Motors was working internationally with Mitsubishi Motors Ltd for direct injection fuel engines.

On the likely impact of Lancer on Opel Astra, vice-president, marketing, Rajiv Chabba agreed that Lancer would take away some market share from the players in the segment but added that it would be difficult to say as to who the loser would be.

GMI, he said, would achieve a volume of 550 cars per month after the launch of diesel model compared to the current levels of about 300. The petrol and diesel models would be sold in the ratio of 60:40. The diesel model had been launched in response to customers demand and the dealership network would be beefed up in the South where there was a good demand for diesel models. The company, he said, was setting up a unique network of authorised service outlets in various cities and towns to increase its reach. These outletswould come under the supervision of the existing dealers, he added.

Swando also denied reports that GMI was bringing down its import content by merely routing the imports through sister concerns. He said the government officials were taken around the plant to prove that the components were in fact made here using Indian labour. GMI is expected to achieve an indigenisation level of 60 per cent by the end of the year.

He also replied in the affirmative about the possibility of signing a fresh MoU under the new automobile policy. He added that discussions with the Director General of Foreign Trade (DGFT) were on in this aspect.

Swando also said that the company would be coming out with more editions of petrol versions. The `World Cup edition', which the company came out with this year was sold out in 40 days.