USA’s GM to invest $1 billion in India

After struggling for nearly two decades in India, US auto major General Motors on Wednesday announced a turnaround plan entailing fresh investment of $1 bn (Rs 6,400 crore) and ceasing production at its Gujarat plant to consolidate manufacturing operations in Maharashtra. The company also said it will roll out 10 locally produced models, including SUV Trailblazer and multi-purpose vehicle Spin, from the Chevrolet family in the next five years as part of the plan. "We want to have a sustainable, profitable business in India. So we had to really do it differently (from how it was done in the past)... 

“I think we are making the necessary changes in India for the long term with a business that has sustained <g data-gr-id="33">profit</g>," General Motors CEO Mary Barra said. Stressing that GM is in India for the long haul, she said: "The commitment we are making to have 10 new vehicles into the <g data-gr-id="34">market place</g> in the next five years, all focused on the customer I think speaks about the commitment we are making to the country." On the investment front, Barra said that GM had announced a total investment of $5 billion to strengthen business in growth markets in India, China, Mexico and Brazil through the development of a new family of vehicles and "one-fifth of that investment will be in India". The majority of the investment will go into strengthening of the Talegaon plant for localisation and capacity enhancement to meet additional products for domestic and export markets. General Motors has been in India since 1996, starting production at the Halol <g data-gr-id="30">plant,</g> and has invested around a billion dollars so far in the country. As of last year, it reportedly had accumulated a loss of Rs 2,740 <g data-gr-id="35">cr</g> in its nearly two decades of existence in India. 

Justifying investments in India, she said: "At General Motors we have <g data-gr-id="21"><g data-gr-id="20">focus</g></g> on generating superior returns to our shareholders. "So as we are investing a significant amount of money in India, a billion dollars, we are <g data-gr-id="22">committaing</g> that we are going to generate appropriate return for our shareholders and lay the foundation to participate in further growth in India because we believe India is a very important market that has substantial growth opportunities and it is very important for GM to be here and we are  doing that."