General Motors has halted spending on new models for India while it reviews its future product line, a media report said.
The company, which in 2015 announced plans to spend US$1bn to improve manufacturing operations (albeit with plans to close a plant in 2016) and launch 10 locally produced models, has not set a schedule for lifting the freeze on new products, according to a Press Trust of India (PTI) report on the Economic Times of India website.
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"…given the shift in customer preferences in India, we are conducting a full review of our future product portfolio and have put on hold future investment in our all-new vehicle family for the market until we firm up our product portfolio plan," a General Motors spokesperson told PTI.
Back in 2015, global CEO Mary Barra, announcing the $1bn spend, said GM would strengthen its operations in India, China, Mexico and Brazil with the development of a new family of vehicles on the Global Emerging Markets (GEM) platform. The Trailblazer SUV made it to India but the promised Spin multi-purpose vehicle (MPV), among other planned new models is yet to be launched, PTI added.
Current models include the Beat hatchback, Cruze sedan and Enjoy MPV.
PTI said the Indian unit managed to cut its net loss in fiscal 2014-15 versus 2013-14 and now would focus on "sustainable profitability" in the market.
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By GlobalData"If GM is going to make significant investments, we need to be certain that they will generate significant shareholder value," the spokesperson said. "Moving forward, our priority remains to establish the right business conditions for sustainable profitability."
Specific questions about whether there would be plant, dealer or staff cutbacks were not answered.
"We are consolidating our manufacturing operations in Talegaon for both domestic market and exports. Exports continue to be an important aspect of our operations in India indeed," the spokesperson told PTI.
The spokesperson said GM India last year more than tripled exports versus 2015 with 69,390 Chevrolet Beats shipped to Central and South America.
The plant nominated for closure in the 2015 announcement, Halol in Gujarat, is currently being sold to China's SAIC Motor Corporation after production stopped last year.
