General Motors India (GMI) said a new three-year wage agreement, good till 31 March, 2020, just signed with the General Motors Employees union would support further advances in vehicle manufacturing quality, efficiency and an improved work environment.

That was in a statement from the automaker. Separately, Economic Times of India noted GMI had decided earlier to consolidate manufacturing at Talegaon and stop production (which ended in 2016) at the automaker's first plant at Halol in Gujarat from 28 April. Last January, SAIC Motor HK, part of China's SAIC Motor,  received Competition Commission approval to acquire some Halol plant assets.

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"For the first time, both the company and the union have agreed to terms and signed the agreement settlement before the previous labour agreement expired," GMI said in its statement.

"We are pleased that we have reached agreement and provided greater certainty for our manufacturing employees at Talegaon," said Pritpal Kular, vice president human resources.

"This goes to show the trust and commitment between the parties is high and we work collaboratively to resolve all issues in an amicable manner.

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"The agreement… is an important step in our plan to consolidate GM India's manufacturing at the Talegaon plant in Maharashtra."

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Tushar Kamthe, General Motors Employee Union president, Talegaon, said: "This timely settlement will revise our wages and help drive quality and enhanced productivity which is beneficial for all employees and will help deliver organisational goals. The agreement has set a new paradigm in the Indian automobile industry and this will pave the way for future co-operative growth."

Last January, GMI was reported to have halted spending on new models for India while it reviewed its future product line. No timeframe had been set for the new model freeze to be lifted.

Current models are sold under the Chevrolet brand name though Opel has been used there previously.