General Motors is struggling in India and hence the company has put its investment plans on hold.
After failing to make up for its loses, GM India has planned to put on hold its $1 billion investment in the Indian market which would boost the launch of new products and improve the infrastructure of their production plant.
The company is going to do a full review of their product portfolio and once the future products are finalised, only then will the investment come and until then it has been put on hold. Earlier in 2015, GM CEO Mary Barra said that the $1 billion investment would help strengthen their business in India, China, Mexico and Brazil through the development of a new family of vehicles known as Global Emerging Markets (GEM) platform.
GM India is doing all it can to cut down on its losses. It plans to sell its Gujarat plant, which means that it also plans to cut down on manpower and investments in the marketing & sales sectors. GM India had losses cut down from Rs. 3,812.46 crore to Rs. 1,003.39 crore which is a good sign.
The automaker is planning to undertake all their manufacturing operations from their Talegaon plant for both domestic markets as well as their exports. GM is currently focused on its exports as it is turning out to be profitable for them.
The Chevrolet Spin which was to be launched in India has been put on hold. The main priority of General Motors is to be sure that they will be able to generate a significant shareholder value whenever they plan to invest in the country. They also plan to establish the right business conditions for sustainable profitability.
GM India Investments
– GM India has put on hold its $1 billion investment
– They will put-through with those investments when they have a perfect plan for generating revenues
– GM India is currently focused on exports rather than the domestic market