General Motors freezes $1 billion investment plan for India and is reportedly focussing on sustained profitability
General Motors has so far had tough outing in the Indian automobile industry despite being present in the market for over two decades. Amidst making entry only a few years back, manufacturers like Renault has gone on to taste success more than Chevrolet due to introducing products pertaining to the needs of domestic customers.
This could have got the American auto giant thinking and excitingly a new product lineup waiting to be launched came into the fore. Chevrolet’s market growth was hit so hard when the latest generation Sail twins failed to impress audience and the flagship Trailblazer faced the same fate as well.
Chevrolet was expected to have at least five products in the pipeline to be launched in the next two years. This includes the next generation avatar of the popular Beat hatchback, the sub-4m compact sedan called Beat Essentia displayed at the Auto Expo, the Beat Activ soft-roader based on new-gen Beat, facelifted Trailblazer premium SUV and an all-new generation of the Cruze sedan.
Among them, the Essentia and new Beat are likely to enter the market in the coming months. However, a recent report emerged on the internet says General Motors is evaluating its complete portfolio and moreover the fresh investment needed for new models have been put on hold.
This effectively means GM is reviewing its strategy and the plans to invest a whopping one billion dollar in the country that was announced in 2015. The huge chunk of money was planned for developing manufacturing facilities and producing as much as 10 local products.
It has also been reported that whether the hold on investments will be lifted or not is yet unknown. The brand is said to be focussing on sustainable profitability in India and in 2014-15 it has managed to cut net loss to 1,003.39 crore as compared to Rs 3,812.46 crore in the previous term.
Source: ET Auto