CarMK.com

NEW DELHI ?? Unfazed by the bankruptcy of its parent in North America, General Motors India is pressing on with its plans to launch an all-new small car in January at the Auto Expo here.

Based on the M300 platform, this new small car is essentially the next-generation Spark, which will sell alongside the current Spark (M200) in the Indian market. The M300 is unlikely to bear the Spark moniker to avoid confusion with the existing Spark.

Underneath its sexy sheet metal, the car’s interior is expected to set new standards in small-car styling. GMDAT (formerly Daewoo) has worked hard to improve the quality of materials and fabrics. Expect the top-end versions of the M300 to offer Indian buyers such options as airbags and antilock brakes.

The M300 will initially come with only a 1.2-liter gasoline engine for the Indian market. It’s essentially the same 1,206cc engine currently used in the face-lifted Aveo in international markets. However, for India the engine capacity will be reduced to 1,199cc by slightly reducing the bore (the stroke remains unchanged). This unit is from GM’s latest engine group, known as Family B. The all-aluminum twin-cam 16-valve engine produces an estimated 82 hp.

The trump card for this region, yet to be seen, is the M300’s 936cc three-cylinder diesel engine. Autocar India reports that this three-cylinder diesel is essentially a derivative of Fiat’s 1.3-liter Multijet with one cylinder chopped off. Expect this sub-1.0-liter diesel to produce 57 hp. The talking point of this compact diesel engine is its class-leading fuel efficiency. Unfortunately, the diesel M300 is not expected until late 2010, as the company’s diesel engine plant at Talegaon, near Pune, won’t be ready until then.

The pricing of the M300 will be the key to the car’s success in India. A high level of localization will ensure that it is very competitively priced to take on rivals like the Hyundai i10 and the Maruti Suzuki A-Star.

Inside Line says: The worry is that the M300 with aggressive pricing could undercut the existing Spark. However, GM has something up its sleeve for that model, too! ?? Hormazd Sorabjee, Correspondent