GM Reviews USD 1 Billion Investment in India, New Platform Deferred

Jack Uppal, Vice President, Marketing, GM India, told Reuters, "The billion dollars was committed based on a certain product portfolio. As the product program could change, the amounts that are required to invest would also change."

GM India currently commands less than 1 per cent share in the domestic passenger vehicle market. In fact, it sales in India have dropped by nearly 40 per cent in the current fiscal year. A slump in sales brought together with a clampdown on diesel vehicles in the country has compelled GM to rethink its USD 1 billion strategy that originally included the launch of the Spin MPV. In June, the company announced that it had cancelled the launch of the multi-purpose vehicle and that it will bring in the all-new Chevrolet Beat Activ instead.

(Chevrolet Spin MPV)

Other than Chevrolet Spin, the plan also included the launch of a new modular platform that would have allowed it to manufacture affordable cars for emerging markets such as India where manufacturers such as Maruti Suzuki and Hyundai dominate the market. Uppal added that though GM's plans have changed, it still intends to launch small cars like the Beat Activ and Essentia compact sedan in 2017.