Chevrolet Revamp: Phase out old models, move to diesel

In an attempt to improve its poor sales & sluggish product portfolio, Chevrolet has announced that at least three of its old laggards will be phased out. The replacement models have been readied as well with a clear strategy to move into a more diesel-based portfolio for India.

The Aveo U-VA hatchback, Aveo sedan and Optra sedan will be the casualties. All three have been market duds and recorded disappointing sales in the first half of 2012 (See table here). Things haven't been much different for the trio in the recent handful of years either.
 
The Replacements

The Sail hatchback, one of the first vehicles manufactured by GM under their partnership with Shanghai Automotive Industry Corporation (SAIC) China, will replace the Aveo U-VA. It will face fierce competition in the B2 hatch space against the likes of Maruti Swift, Ford Figo, Honda Brio and Hyundai i20. Chevrolet will expect it to put up a stronger fight and clock up higher volumes than the Aveo U-VA did. Likewise, the Sail sedan will replace the Aveo sedan with similar expectations.

Meanwhile, the production of the Optra sedan has already been dicontinued. Once a competent sedan, Chevrolet has been flogging this dead horse for a while now as is evident in its rapidly declining sales, culminating in a dismal month in May 2012 when it sold only 3 units. Honestly, the Optra is way past its sell-by date and doesn't offer the value proposition that it did in year 2004.

Diesel Calling

Having clearly realised the higher market demand for diesel cars, it looks like Chevrolet will make the much required yet much awaited shift to a diesel-dominated portfolio by launching a series of vehicles later this year.

Among this lot will be the diesel versions of the Sail hatchback, Sail sedan and Enjoy MPV. The latter will be expected to compete in the ever growing UV segment where Tavera sales have been on a free fall. The Sail models will also be available in petrol versions.

From its joint initiative with Fiat, Chevrolet has access to the famed 1.3L turbo-charged diesel engine. Interestingly, Chevrolet also sells a 3-cylinder variant of the same engine in India (currently powering the Beat hatchback only).

Revamp

Along with the new launches, Chevrolet are also rolling out upgraded versions of their existing products. Recent launches have featured the 2012 Cruze sedan with a revised engine and the upgraded Captiva 2.2 AT SUV. Finally, a more fuel-efficient version of the Spark hatchback should also be launched by the year-end.

Conclusion

It is certainly looking desperate for GM India but their dismal performance in the first half of 2012 might just be wakeup call they needed to get their act together. The decision to revamp the portfolio is obviously a positive move, with the petrol-diesel price gap widening ever so frequently. With these vehicles expected to hit the roads in and around the Diwali festivities, Chevrolet will hope for all of Goddess Laksmi’s blessings to see them through.