New Delhi, Jan 19, 2006 (Economic Times): It could tum out to be the third hot hatch in the premium B-seg. General Motors today previewed its Aveo-UVA, a 1.4 litre premium hatch which will "compete aggressively with the Suzuki Swift and Hyundai Getz," said GM India president & CEO Rajeev Chaba. The company also unveiled its 1.6 litre Aveo mid-size sedan and the 1.6 litre Optra SRV sportback. While the three cars will be commercially launched between February and June, the pricing is expected to be aggressive. Company sources say the hatch will target the Swift/Getz range while the notch will target the City/Fiesta.

GM India is also going to spend Rs 100 crore cranking up capacity at its Halol plant from 60,000 units per annum to 85,000 units by the end of this calendar year.

GM is looking at around 20,000 plus units of the premium hatch and 15,000-plus units of the notchback Aveo this calendar year. The company will also increase its distribution footprint by adding another 20-25 dealerships. "This would mean further investment of around Rs 100 crore by our dealers," said Mr Chaba.

To start with, the three models will have around 25-30% local content which will peak at 60% for the two Aveo models and 40-45% for the Optra SRV, Mr Chaba said. As for phasing out the Corsa and Sail hatchbacks, he said: "We will focus on the Aveo now. As we grow and the market evolves, we will look at the feedback on the Corsa and then take a call whether to have both the Aveo and the Corsa or not."

General Motors is looking at total sales of more than 50,000 units this calendar. It docked 30,000-plus units in 2005. The company plans to start off with a 1.4 litre Aveo hatch and will offer all the bells and whistles at the top end from ABS to airbags.