GM `s new car platform on hold |
General Motors is re-evaluating its planned $1-billion investment in India and has put on hold moves to bring a new car platform to the country. The strategy rethink comes after GM’s India sales fell by nearly 40% in the year to March 30, with its share of the domestic passenger vehicle market now below 1%. Sagging sales and a regulatory crackdown on diesel-powered vehicles are now forcing GM to redraw revise its plans.The US automaker had previously committed to investing $1 billion in India to double its market share to 3.6% by 2020 and make the country a global export hub.The billion dollars was committed based on a certain product portfolio, according to Jack Uppal, vice president for marketing at GM India.As the product programme could change, the amounts that are required to invest would also change, he added. GM’s original $1 billion plan included, among other things, the launch of a multi-purpose vehicle, Spin, and a new modular platform designed to build low-cost cars for emerging markets.In India, GM posted a net loss of 10.33 billion rupees ($154 million) in the year to March 30, adding to losses made in the preceding three financial years. GM is not the only foreign company battling to crack an Indian car market forecast to be the world’s third largest by 2020.
|
|
|
|