GM might shut down car sales in India - To focus only on exports

GM might shut down car sales in India – To focus only on exports

GM had earlier announced that it's investment on future India product program has been put on hold.

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Though Indian auto market is estimated to be the world’s third largest by 2020, the scenario is not very encouraging for all OEMs. It’s no secret that the American auto giant GM has been struggling in India for over a decade.

The company is currently in the process of shutting down its Halol plant in Gujarat by April 28 and consolidate production operations at its Talegaon plant in Maharashtra. Unfortunately, none of the 8 products in the current portfolio has managed to keep the sales operations sustainable.

Mary Barra meets PM Modi
2015 File Photo – GM CEO Mary Barra with PM Narendra Modi.

According to a new report, GM India is looking at wrapping up its sales operations and focus all its resources on manufacturing export oriented models at its Talegaon plant. Economic Times reports that, according to its sources, production of India-specific right hand drive models at Talegaon has already ceased. The plant currently produces only LHD Chevrolet Beat (branded as Spark) for the Mexican market.

At Halol, production of Cruze has come to a halt and the last Tavera will roll out on April 28. It’s to be noted that, GM’s Chinese partner SAIC is in the run to purchase the Halol plant but it’s not ready to inherit any of GM’s liabilities such as labor settlement issue.

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Replying to ET’s email query, GM India’s spokesperson stated that the company will not respond to speculation. She added that, GM India is evaluating its future product portfolio.

Announcement regarding the halt of sales operations in expected to be made in May. This comes as a troubling news for the brand’s existing dealers and customers in the country.

Source Economic TImes