GM launches revamped Chevrolet Aveo in China

GENERAL Motors Corp began selling the revamped Chevrolet Aveo hatchback in China yesterday as international car makers rev up efforts to sell small-engine vehicles with improved technology as they aim to lure back customers in a market marked by falling prices.

The model, which debuted at the Frankfurt Motor Show in September, is made by its Chinese venture Shanghai General Motors Corp and costs from 69,900 yuan (US$9,845) to 97,900 yuan.

Besides the 1.4-liter and 1.6-liter engine versions, the Chevrolet Aveo will also be available with a highly fuel efficient 1.2-liter engine, which is slated to hit the market in the second quarter.

The revamped Aveo is among the first batch of products after Shanghai GM announced its Drive-to-Green strategy in January to launch fuel economy and low emission engine technologies this year.

''The three models (versions) are important products in the ambitious plan,'' said Ding Lei, general manager of Shanghai GM. ''They offer higher driving dynamics, lower emission and less fuel consumption, which will contribute to the development of China's small-engine vehicle segment.''

The Chevrolet Aveo was launched at a time when sales in the overall small-car segment fell last year.

Sales of cars with engines smaller than one liter slumped 31 percent last year. The market share of passenger cars with engines smaller than 1.3 liters fell six percent during the same period.

"The gloomy market performance was blamed on a traditional perception that small cars are backward technologically, consume high fuel and are heavy polluters,'' said Sun Xiaodong, deputy general manager of Shanghai GM. "We are confident the market segment will have a rosy future with improvements in fuel efficiency and environment protection.''

The new models will be the driving force for Shanghai GM to keep a 36-percent sales growth for its Chevrolet brand this year, said Steve Betz, general director of Chevrolet Marketing and Distribution in Shanghai GM.

Toyota Motor Corp last month launched the 1.3-liter Vios while the Yaris, another small-engine car, will drive onto the market in the middle of this month. They will help boost its total sales to 700,000 units in China this year.