General Motors plans $1-bn investment in India by 2020

As a part of its strategy to invest $5 billion in global growth markets like Brazil, China, India and Mexico, General Motors (GM), the world’s second-largest automaker, will spend $ 1 billion in India by 2020. The fresh investment will be used primarily to expand the capacity at its Talegaon plant in Pune (Maharashtra) from 1,30,000 units a year to 220,000 by 2025. The expanded capacity is likely to be utilised for exports, for which Talegaon has good infrastructure and ecosystem.
 
Meanwhile, GM, Indian operations of which has remained marred by losses, has decided to shut down its Halol (Gujarat) plant.
 
Stating that the company was restructuring and consolidating its Indian operations to have a sustainable business, Mary Barra, chief executive officer, GM, said, “GM cannot remain a global leader without making a serious investment in expanding presence in growth markets like India.”
 
While Halol unit established in 1996, Talegaon plant is GM’s relatively new manufacturing site being set up in 2008.
 
The new investments, the company claimed, would create 12,000 new jobs for GM and its suppliers in India. Despite expansion at Talegaon, the company’s India capacity will decline from 280,000 at two plants to 220,000 at one after restructuring.
 
“The Indian market is expected to grow to eight million units by 2025. We want to be part of this growth,” Barra added.
  
FOR COMPLETE REPORT READ: GM drives out of Halol, to invest $1 bn in Talegaon by 2020