GM to Invest $1 Billion in India, Double Market Share by 2020

“Today we draw the line and mark the beginning of a new General Motors here in India”, Mr. Jacoby told a news conference in New Delhi, which was also attended by GM Chief Executive Mary Barra.

In addition, GM operates the Flexi powertrain plant at Talegaon which has a capacity of 160,000 engines per annum.

Even after two decades in India, GM’s sales are falling and it is still losing money.

The move will affect 1,100 employees at the Halol plant that has a total annual manufacturing capacity of 1.1 lakh units annually. Instead, GM plans to equip new Chevrolets with features such as data connectivity, and engineer them to comply with emissions controls and safety technology requirements that are moving toward the same standards as markets mature, Ammann said. The new investments, the company claimed, would create 12,000 new jobs for GM and its suppliers in India. “Our Talegaon facility not only has an assembly plant but (also) a powertrain plant”, Barra said. We (will) look for a very amicable solution.

Santiago Chamorro, president of GM do Brasil, added: “This is the largest investment plan ever done by the company in Brazil and demonstrates the commitment to the country and the confidence in the long-term growth potential of the local market”. Sales of GM vehicles in India declined 36% in the year through March to 51,839 vehicles, widely underperforming an Indian market which grew 3.9% to 2.6 million vehicles over the same period. GM is expected to outline this week investments in Brazil and India related to the project.

The company plans to introduce 10 locally-manufactured Chevrolet range of vehicles in India over the next five years, starting with the Trailblazer sport-utility vehicle in October, Mr. Jacoby said. The automaker is collaborating with China’s SAIC Motor Corp in developing a new family of Chevrolet over the next few years. Could the new vehicle family give us a glimpse into future Chevy products offered to the U.S market? The company now derives about 75 percent of its models from 14 core architectures. It has set a target of exporting 40,000 units by 2016. Last year, it exported just four per cent of its production.

For starters, that means sharing development costs with its joint venture partner in China, SAIC Motor.

The SUV launch will be followed by multi-purpose vehicle (MVP) Spin’s introduction into the Indian markets by early 2017. Last year the Department of Trade and Industry granted GMSA, along with Nissan, a special dispensation to allow it to continue participating in the Automotive Production and Development Programme (APDP), despite not meeting the production volumes required.