Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2012        Go!    
 
 
December 19, Tuesday 2017 3:51 AM       

       HEADLINES: Himachal victory, a fillip to secular forces: Pinarayi                                              Guj polls: BJP leading in 107 seats, Cong in 71 in early trends                                              Modi flashes victory sign as BJP takes unassailable lead in Guj, HP                                              HP polls: CPM dedicates Theog win to people                                              HP polls: BJP sets eye on victory as Dhumal stares at defeat                                              Congratz on victory, but are you really happy: Prakash Raj to Modi                                              Thousands rally in Pak against Trump's Jerusalem move                                              Lanka holds mass wedding for 50 Chinese couples                                              Putin thanks Trump after CIA helps foil terror plot                                              Rohit Sharma climbs to 5th spot in ICC batsmen rankings                                              Perth Test: Ruthless Australia crush England to regain Ashes urn                                              Kaumudi Facebook
       AUTOMOBILE Next Article: India eyes all-electric car fleet by 2030  
       GM to stop selling cars in India by 2017 end
 
         Posted on :15:54:15 May 18, 2017
   
A A
       Last edited on:15:54:15 May 18, 2017
         Tags: General Motors, India
 

NEW DELHI: General Motors Co will stop selling cars in India from the end of this year, drawing a line under two decades of battling in one of the world's most competitive markets where it has less than a one percent share of passenger car sales.

The decision was announced as part of a series of restructuring actions from the Detroit automaker on Thursday, and marks a significant blow to India's strategy of encouraging domestic manufacturing.

GM says it would no longer market its Chevrolet brand - its only brand of cars marketed in India - despite India's promise as a market set to overtake Japan as the world's third largest in the next decade. But it doesn't plan to leave India entirely.

It plans to keep operating its tech centre in Bengaluru and to refocus its India manufacturing operations by making one of its two assembly plants in India – the one at Talegaon, about 100 km (62 miles) southeast of Mumbai – into an export-only factory. It plans to sell the Halol plant in Gujarat to Chinese joint venture partner SAIC Motor Corp.

"We are not giving up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is extremely competitive," Stefan Jacoby, GM's chief of international operations, said in an interview.

GM's exports from India, mainly to Mexico and Latin America, nearly doubled to 70,969 vehicles in the fiscal year than ended on March 31. The Talegaon plant has a capacity of 130,000 vehicles a year.

Jacoby said the move to turn the Talegaon assembly into an export-only plant will not impact GM Korea and its position as an export hub. India will export vehicles mostly to Mexico and South America, among other destinations, while GM Korea will ship Korean-made cars to North America, Southeast Asia, Australia and Pakistan.

Dan Ammann, GM’s global president, said the restructuring actions for India announced on Thursday in essence cancels "most" of the plan GM unveiled in 2015 to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a Global Emerging Market vehicle programme or GEM for short, and build a new line of low-cost vehicles in India.

The decisions to significantly scale down GM's operations in India are results of months of analysis over "where we are going to place our bets (globally) as a company," Ammann said in an interview.

The move is the latest blow to Prime Minister Narendra Modi's ‘Make in India initiative’, aimed at making the country a global manufacturing powerhouse.

Last year, Ford Motor Co shelved plans to produce a new compact car family designed mainly for emerging markets. India and China had been slated to be the main manufacturing hubs for the new range that was set to begin production in 2018.

The auto sector is a major employment generator accounting for about 29 million direct and indirect jobs in India. Moreover, the $93 billion industry contributes 7.1 percent to the nation's gross domestic product and almost 50 percent of India's manufacturing output.

Ammann said GM looked at many options but determined that the investment originally planned for India would not deliver the kind of return other global opportunities offered.

GM plans to continue to work on the $5 billion GEM programme, which GM is developing with SAIC Motor. Ammann said the programme remains on track, even without India now, to account for about 2 million vehicles a year in global sales volume, mainly in Latin America, Mexico and China.

Despite being an early entrant, GM has struggled to boost its sales and market share in India in part because it has failed to launch low-cost yet feature-rich vehicles that Indian buyers prefer, according to analysts. Many of them also blame the high cost of maintaining and servicing Chevy cars for deterring cost-conscious buyers in India.

GM said in 2015 it aimed to double its India market share to around 3 percent or more by 2020. But its market share fell to below 1 percent in the year ended March 31 from 1.17 percent the previous year - even as India's market grew 9 percent to climb above the 3 million vehicle level. GM's volume in India fell by a fifth to 25,823 vehicles in the year ended March 31.

The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. But for India, GEM was still too pricey a technology since it has been designed under GM's global vehicle safety, performance and other standards.

To be successful in India, Jacoby said one option for GM was to "give up on implementing global platform and vehicle standards". The other was to team up with a local partner to run full operations as an automaker designing products and manufacturing and marketing products locally.

"We have made the decision that these two options are not for us," Jacoby said.

A A
       AUTOMOBILE
Next Article: India eyes all-electric car fleet by 2030
 
 
AUTOMOBILE HEADLINES
Tata Motors to hike passenger  
Tata Motors to hike passenger vehicle prices by up to Rs. 25k  
Panasonic develops two-passenger automatic driving vehicle  
World's Fastest Cat goes head to head with Super Fast Car: Who won?  
Toyota, Suzuki finalise pact to launch EVs in India by 2020  
Electric vehicles way ahead for Smog-choked Delhi  
Piaggio to roll out new electric scooter 'Vespa Elettrica' in 2018  
Suzuki unveils new range with enhanced safety measures  
Yamaha unveils 'Motobot' motorcycle-riding robot  
Lutyens Motorrad launched as BMW Motorrad Partner in Delhi  
Hyundai rolls out Tucson with 4WD system at Rs 25.19 lakh  
Mercedes retains top slot in luxury segment in India  
Skoda unveils new SUV Kodiaq  
Mercedes launches Edition C priced at Rs 42.54 lakh  
Tata Motors launches compact SUV Nexon at Rs 5.87 lakh  
Renault unveils premium SUV Captur; launch likely before Diwali  
Datsun India launches redi-GO GOLD 1.0L at Rs. 3.69 lakh  
Jeep Compass bookings touch 10,000 mark  
Chinese passenger car now being manufactured in Pak  
Datsun India launches more powerful redi-GO 1.0L  
Ducati launches the all new Scrambler Desert Sled in India  
Hero MotoCorp phases out select models, variants  
Maruti overtakes Infosys, ONGC in market capitalisation  
GM to stop selling cars in India by 2017 end  
India eyes all-electric car fleet by 2030  
 
Do you think Gujarat poll result has dented the image of BJP?
yes
 
no
 
no opinion
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy