Talegaon, which now has a production capacity of 130,000 vehicles, will increase its base capacity to 220,000 vehicles by 2025.
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India’s automobile market has been sluggish for the past few years, with annual sales of less than 3 million cars. We are delivering on our promise and doubling our investment in India. In reality, the demands of different markets with different requirements for vehicle safety, fuel efficiency and other factors has made it tough for automakers to streamline operations in far-flung markets. At the same time, we need (a) great partnership with our dealers. Last year General Motors India had exported 984 units to Chile.
Jacoby said the company was working hard to find an alternative solution to Halol.
Can you explain the rationale behind shutting the Gujarat plant when everyone is looking at the state for manufacturing?
General Motors is investing in a new family of compact Chevrolets that will be co-developed with Chinese partner SAIC and aimed at emerging markets. “This doubles our investment into India since 1996″.
Ammann also said GM believes it can take advantage of economies of scale to be able to produce content-rich cars that it can sell at affordable emerging-market prices will still generating “the right kind of returns” for the company.
Jacoby said by 2020 the company would “completely renew its vehicle portfolio” in India and its models in the market would not be older than three years.
General Motors Company is embarking on a bold new plan to grow sales in emerging markets. The new models may require a new manufacturing line.
GM was established in India in 1996 in Halol. She said the auto maker had looked at all aspects of its business in India and decided that consolidation was the only way to make GM’s India operation work. Apart from increasing localisation, Chevrolet also plans to widen its dealer network. Hyundai is considering another location in addition to its Tamil Nadu factory. Mary Barra, Chief Executive Officer, GM, shared with BusinessLine the company’s long-term India strategy, which will not only help it survive competition but earn revenues.
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In 2018, we start with the new family, which we have in mind (with global investment) plus other models as well. It was Barra’s second visit to India in a year. On the large number of recalls it has faced in India, Saxena said: “We know we have not done a very good job”. Mr. Ammann declined to say how many architectures will be consolidated, but he noted vehicles like the Chevrolet Aveo will move to this program. GM is also readying an all new Beat hatchback and a sub-4 metre sedan based on the M300 platform for the mass market in 2017. GM has installed capacity of 1,10,000 units in Halol and 1,30,000 units at Talegaon now. Growth, however, would not come easy for GM as competition in the multi-player Indian market will further hot up.
