GM may put investment plans in India on hold
The new platform would have helped GM price cars competitively in a market where buyers prefer low-cost vehicles.
New Delhi: General Motors is re-evaluating its planned $1 billion investment in India and has put on hold moves to bring a new car platform to the country, company officials said.
The strategy rethink comes after GM’s India sales fell by nearly 40 percent in the year to March 30, with its share of the domestic passenger vehicle market now below one per cent. Sagging sales and a regulatory crackdown on diesel-powered vehicles are now forcing GM to redraw revise its plans.
The US automaker had previously committed to investing $1 billion in India to double its market share to 3.6 percent by 2020 and make the country a global export hub.
“We are conducting a full review of our future product programme in India,” Swati Bhattacharya, a spokeswoman at GM India, said. “As a result, we are also putting on hold future investment in our all-new vehicle family in India until we firm our product portfolio plan.”
The new platform would have helped GM price cars competitively in a market where buyers prefer low-cost vehicles.