One of the major auto makers, General Motors is planning to reconsider its investment plans in India. As announced by the company, this step has been taken due to “unprecedented regulatory uncertainty” and change in customer preferences. The move has also come after GM’s India sales fell by nearly 40% in the year to March 30, with its share of the domestic passenger vehicle market now below 1%.
According to an Indian spokesperson of General Motors:
We are conducting a full review of our future product program in India. GM will continue with its next family of vehicles in global growth markets. However, the sourcing of components for India is being put on hold at this time while we conduct a full review of our future product program. As a result, we are also putting on hold future investment in our all-new vehicle family in India until we firm up our product portfolio plan. GM continues to monitor the Indian market and will evolve its product strategy accordingly.
Last year, the company had announced a turnaround plan for India entailing fresh investment of USD 1 billion and ceasing production at its Gujarat plant to consolidate manufacturing operations in Maharashtra. However, in June the company said that it would continue production from its Halol plant in Gujarat until March next year, even as it continues to review future options, including sale of the facility.
Further to the statement, the company said that they continue to see potential in India. GM is said to be working to respond to a changing Indian market, so it can deliver to Indian customers the safe, high quality vehicles they want, backed by the world-class customer experience they deserve.
Accordingly, the company will not proceed with the Chevrolet Spin MPV in 2017. Instead, it will continue to listen to customers and shift focus to growing segments, including SUVs and softroaders. GM still plans to launch small cars such as the Beat Activ hatchback and Essentia compact sedan in 2017, as it attempts to bolster sales.