American company General Motors has put its plans to invest in India "on hold" as it struggles to make a business case owing to its steadily declining sales, low production, and a portfolio that will shrink to just one model from May. As operations at its Halol factory in Gujarat have been arranged to shut down from next month, rumours are that it may review operations at its Talegaon facility in Maharashtra and could give access of the factory to the PSA Group- European car major that owns Peugeot and Citroen.
Sources said the American company is carrying out a thorough review of its India business and a potential partnership with the PSA Group is being seen as one of the options. Talks around India came weeks after the PSA Group, a French auto major, bought out the loss-making Opel division from GM in Europe from $2.3 billion. When asked to comment, a GM spokesperson said, "We do not respond to speculation. GM India continues to focus on consolidating manufacturing at our Talegaon plant."
GM operations in India have been plunging over the past few years. When asked to comment on the company's thin product line-up and difficult operations, the GM India spokesperson said, "… global investments in India product programmes are on hold as we conduct complete review of our portfolio. It remains on hold." The company said that even as the Beat Mini will be the only car that it will produce in India after the closure of the Halol plant, it has built up "enough supplies" of the Tavera MPV and the Cruze Sedan to ensure a diversified portfolio at retail points.
