General Motors is all set to get a makeover in India after two decades of doing business in the country. In what would come as a big booster for the ‘Make in India’ initiative, the third largest car manufacturer in the world is all set to invest USD 1 billion in India. The investment would help in a major overhaul of the company’s operations and revamp its capacity at the Talegaon unit in Maharashtra, although its Halol unit in Gujarat will be shut down later in the year. GM is now set to court Indian car buyers with the launch of 10 new models by 2020.
While the shutting down of Halol in Gujarat would come as a setback to the state which was said to be a promising automobile manufacturing hub, the decision to revamp the operations of the company and improve profitability seems to be the roadmap for the company’s revival in India. Its market share is less than 2 percent in India and has also suffered massive losses. Despite the setback in Halol, the decision to invest such a massive amount in India instead of winding down its operations augurs well for the manufacturing sector and the auto industry in India.
The aim to consolidate production at a single location and revamp the product line could probably lead to more capacity and expansion over the long term. It could also lead to additional employment generation and increase the market share as well.
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