General Motors India has shelved plans to launch an entry-level car below the Spark

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rivalling Alto, as it does not find it feasible to have a smaller car in its portfolio. Instead, it may fit a smaller petrol engine in the Spark.

The American carmaker already sells three small cars — Beat, Spark and Aveo U-Va. A 1-litre petrol engine powers the Spark, the company’s entry-level car in India with the base version starting at Rs 3,00,750 (ex-showroom, New Delhi).

“The small car was under discussion when the Rs 1 lakh car (Nano) came in. Seeing things in terms of today’s developments, we think that it’s not right for us,” president and managing director of General Motors India Karl Slym said. “We have an engine plant in Talegaon, which is capable of building smaller engines for the Spark,” Slym added.

Hyundai Motor will roll out a small car below Rs 3 lakh in competition to the Alto in November this year. The car will be the first direct challenger to the Alto, the highest selling car in the country since its launch a decade ago.

General Motors is betting on the diesel variant of Beat to drive its sales growth this year. It will be launched by the end of July and would return a mileage of 24 km per litre, Slym said. “Last year we sold 110,000 cars and this year we are looking at 130,000-135,000,” he added.

The first models from its Chinese joint venture partner Shanghai Automotive Industrial Corporation (SAIC) will be rolled out during the Auto Expo in January 2013, the company said.

Meanwhile, on Thursday, the carmaker showcased an electric version of the Beat. “It’s a learning vehicle for us and we have no plans to launch it,” Slym said. It is powered by a 300-cell lithium-ion battery that can for up to 130 km when fully charged.

General Motors will showcase the technology in other countries including Korea, China and Germany.