General Motors India is facing the heat as they haven’t been able to gain the trust of the Indian buyers.

Chevrolet Enjoy
The Enjoy and the Tavera account for more than half of the sales in India

The Indian operations of General Motors is going down the tank with losses mounting to over Rs. 1100 crore during FY 2015-16.Even though there has been a boost in their revenue which was around Rs. 2,500 crore during this period and their net worth accounting to Rs. 249 crore.

General Motors commenced with their Indian operations back way in 1995. It is going through one of the worst patch of its tenure in India. General Motors India has 6 products on sale and none of the models are able to keep up with the competition provided by other manufacturers. Even companies like Renault and Nissan which entered India much after GM are faring better.

The Detroit based car maker last year said that it was putting on hold its $1 billion investment plan in India which can result in delayed launch of new products. As a result of these losses General Motors is shifting its focus to China as that seems to be a growing market for them.

In order to cope up to their losses General Motors India has put up its Gujarat plant for sale. The plant has a capacity to produce 1.27 lakh units per year. Selling this unit would help GM raise funds up to Rs. 1500 crore. General Motors also has another plant which is based out of Talegaon in Maharashtra. This plant can produce up to Rs. 1.6 lakh units per year.

The car makers largest selling models are MUVs Tavera and Enjoy which account to more than half of its total sales. The sales of General Motors in India has dropped to 3 digit numbers per month. However, the company’s exports for April-November 2016 grew by a whooping 230% to 43,000 units. The higher export shows that General Motors is more focused on using India as a manufacturing hub as it is cost efficient.

General Motors India Losses

– General Motors India currently is facing losses of more than Rs. 1100 crore
– General Motors is shifting its focus to China
– To make up for the losses they have put their Gujarat plant on sale

Chevrolet Beat
General Motors India is more focused on exports

Source –