General Motors Re-Evaluating India Investments
General Motors has put on hold moves to bring a new car platform to India as it re-assesses its strategy for India. The automobile major is re-evaluating its planned investment of $1 billion in India, according to company officials.
The rethink comes as GM’s India sales have fallen nearly 40% in the year to end-March, and its share of the domestic passenger vehicle market is now below 1%. Sagging sales and a regulatory crackdown on diesel-powered vehicles are now forcing GM to redraw plans.
In 2015, the U.S. automaker had committed to investing $1 billion in India to boost its domestic market share and make the country a global export hub by improving its manufacturing base and launching strategic products.
“The billion dollars was committed based on a certain product portfolio,” Jack Uppal, vice president, marketing at GM India told Reuters. “As the product program could change, the amounts that are required to invest would also change.”