GM finds Indian roads a bit too bumpy; to cease manufacturing ops on Dec 24

In spite of straddling the market with multiple competitively priced models, GM was pushed to the fringes by the rivals from Japan and Korea.

General Motors India is scripting the last lap of its two decades old India journey.

The Detroit based carmaker that had ceased the domestic business in 2017, is now in the process of winding up the skeletal operations at its facility in Talegaon near Pune.

“GM vehicle, powertrain and CKD (completely knocked down) production will cease at the Talegaon manufacturing facility on December 24, 2020,” said GM India spokesperson adding that GM has also submitted an application for the closure of the site.

“It rolled out the last model off its assembly line on October 31 for exports,” said a person privy to the development.

GM, one of the earliest global carmakers to enter the Indian market opened two factories in the country—in Halol, Gujarat and Talegaon near Pune.

It introduced a number of products tailored to the value-conscious Indian buyer.

The Chevrolet Beat, for instance, could be bought with the smallest diesel engine available in India at the time.

In spite of straddling the market with multiple competitively priced models, GM was pushed to the fringes by the rivals from Japan and Korea.

Its share of the market shrunk from 4.7 per cent in 2010 to about 1 per cent in 2016.

As a result, in 2017, GM announced its departure from the Indian market. But it retained exports.

A year after the US automaker got into an agreement with China’s Great Wall Motors (GWM) to sell off its manufacturing facility, the fate of the venture, hangs in balance.

Regulatory hurdles sparked by the geo-political tensions between China and India, have delayed the closure of the deal between the two.

The GM India spokesperson said, “Both companies continue to work with all relevant authorities to secure necessary government approvals to support the transaction, which will deliver future jobs at the site.”

There are 1800 salaried and hourly employees at the site.

GM will support impacted employees with separation packages and transition support, the spokesperson added.

Photograph: Amit Dave/Reuters