GM to stop selling products, focus on exports

NEW DELHI (TIP): American auto major General Motors today decided to stop selling its vehicles in India as there was no turnaround in its fortunes here after struggling for over two decades to make a mark. It started its India journey in 1996.

The company will now focus on exporting vehicles from its manufacturing plant at Talegoaon in Maharashtra after it stopped production at its first plant at Halol in Gujarat last month. It has also exited from four other international markets, including Russia and Europe.

GM Executive VP and President of GM International Stefan Jacoby said after exploring many options the company determined that the increased investment originally planned for India would not deliver the returns of other significant global opportunities.

“It would also not help us achieve a leadership position or compelling, long-term profitability in the domestic market,” he added.

GM sales in India were down nearly 21% in 2016-17 to 25,823 units. Its production, however, grew about 16% to 83,368 units most of which were exported.

In 2015, GM had announced plans to invest $1 billion to enhance manufacturing operations and roll out 10 locally produced models in India while deciding to stop production at its first plant at Halol in Gujarat. However, struggling to make a turnaround in India, the company put on hold the plan and undertook a full review of its future product portfolio here.

VOLVO CARS TO START ASSEMBLY IN INDIA

GOTHENBURG (TIP): Swedish auto major Volvo Cars will start assembly operations in India by the end of this year to expand in the local market and become more competitive and profitable. It will start assembling its premium SUV XC90 and has entered into a contract manufacturing agreement with Volvo Group India to use the latter’s existing infrastructure near Bengaluru and production licence. “It’s impossible to grow on imports in India. That’s why we are entering India with local assembly,” Volvo Cars president and CEO Hakan Samuelsson told a group of visiting Indian reporters.

Source: PTI