Photography: Mohd Nasir
In a major announcement by
General Motors in India that is bound to have far reaching implications on the
fortunes and growth of the company in the country, the US based auto giant has
confirmed that it will make US 1 billion (Rs 6,400 crore) in new investments in
India. The announcement was made in New Delhi by General Motors global CEO Mary
Barra. It is Ms Barra’s second visit to the country in 12 months.
The company had announced on
July 28, 2015 that it is also making a US $5 billion investment to strengthen
its business in global growth markets through the development of an all-new
vehicle family. This family of vehicles will meet the rapidly changing demands
of customers in Brazil, China, Mexico and India. General Motors has already
invested US $1 billion in India since 1996.
To rationalise its domestic
manufacturing operations, Chevrolet will cease production at its Halol facility
in the state of Gujarat by the second half of 2016. The focus will now be on
its Talegaon facility near Pune in Maharashtra. The majority of the new
investment will support the strengthening of Chevrolet’s Talegaon manufacturing
base. It will enable the facility to localise, industrialise and optimise its
footprint to accommodate additional products for the domestic and export
The new investment is expected
to create approximately 12,000 new jobs for GM India and its suppliers. Besides
growing the use of the domestic supply base to support increased product
localisation, Chevrolet will also grow its domestic dealer network to support
the greater availability of vehicles and service for consumers nationwide.
Talegaon, which currently has
a production capacity of 130,000 vehicles, will increase its base capacity to
220,000 vehicles by 2025. It will also
become a global export hub for GM, with more than 30 percent of its annual
production planned for markets outside India.
Along with Ms Barra, others
present during this strategic announcement in New Delhi included GM Executive
Vice President and GM International President Stefan Jacoby and GM India
President and Managing Director Arvind Saxena. The three had earlier in the day
met with India’s Prime Minister Narendra Modi to brief him on Chevrolet’s
plans. This was Ms Bara’s second meeting with Modi in India in a short span of
“Chevrolet is committed to
India for the long term,” said Barra, adding that “We are delivering on our
promise and doubling our investment in India. This will allow us to provide our
Indian customers the great vehicles they want and the world-class customer
experience they deserve. It will also support the government’s Make in India
“The new global vehicle family we just
announced will have several different body styles designed to meet the
expectations of the Indian consumer,” said Jacoby. “The vehicles will be manufactured and sold
in India and feature striking styling that has never been seen here before.
They will also be exported worldwide. With this investment, our aim is to
double our market share in India by 2020,” he further added.
There are no plans to export
the vehicles to mature markets such as the United States, the company informed.
GM India is expected to roll
out 10 new locally produced Chevrolet models within the space of five years.
They include the Trailblazer SUV, which will go on sale in October of this
year, and the Spin MPV, which will reach the market in early 2017.
manufacturing in a single location in India will support the long-term
sustainability of our business in a challenging emerging market,” said Saxena.
“This is not a decision that we are making lightly and we are committed to
treating those impacted respectfully,” said Saxena.
Chevrolet has communicated
directly with employees at the Halol facility and will have more information to
share at a later date.
GM was established in India in
1996 in Halol. Its Talegaon facility was
established in 2008. GM also operates the GM Technical Center-India in
Bangalore, which was established in 2003.
India offers a broad lineup of locally built Chevrolet products. In
2014, it sold 56,700 vehicles, giving it market share of 1.8 percent.
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