General Motors India on Monday introduced the diesel variant of its flagship hatchback Beat

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at aggressive prices to challenge top selling cars such as Swift, Figo and Ritz. The base variant has been priced at Rs 4.29 lakh, while the top-end diesel costs Rs 5.45 lakh (ex-showroom, New Delhi). The Swift diesel starts at Rs 4.99 lakh, Ritz at Rs 4.86 lakh and Figo at Rs 4.60 lakh.

The 1.0-litre engine is the smallest passenger car engine developed by General Motors globally and also the first diesel car in India in this range. “The Beat is not just about looking cheap, we are giving a very technological package. We aim to sell 7,000 to 8,000 units of the Beat per month, against 2,700-3,000 units now,” said Karl Slym, president and managing director of General Motors India. The carmaker also seeks to import the locally developed engine to Europe in future.

“There is scope for cars with such engines in European markets, but we need to sell more cars in India first,” Slym added. The company has received 1,500 pre-launch bookings for the car.

Diesel cars have seen increased demand with popular diesel models such as Swift, Figo and Polo on waiting periods of two to four months albeit the price difference of Rs 23 between a litre of petrol and diesel. Diesel variants now contribute 70 per cent of a car’s sales of models that sell in both petrol and diesel versions, according to Slym. The Beat returns a fuel efficiency of 24 kmpl, according to ARAI (automotive research association of India) standards. Maruti Suzuki will launch the Swift with a mileage of 23.8 kmpl in August 2011, underlining the trend of competition amongst companies wooing customers with higher fuel efficiency even in diesel-driven cars.

With the diesel version of Beat, GM India expects sales to grow at double the market rate. “If the market grows at 12-15 per cent, we would be looking at a growth of 24 to 30 per cent,” Slym said. The US-based carmaker sold 110,000 units in India in 2010. “In terms of non-Indian cars, GM has done well as the fifth biggest player. More people are now open to trying other brands apart from the top three (Maruti Suzuki, Hyundai and Tata),” Slym added.

GM India plans to launch five new cars offering a total of 14 fuel options within the next 18 months. The new cars will include cars from Chinese partner SAIC (Shanghai Automotive Industrial Corporation) as well as a hatchback to replace the old laggard Aveo U-Va. Besides, it may also consider fitting a small diesel engine in its Spark small car.