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GM to invest $1 billion in Maharashtra

  • Hiral Patel
  • August 1, 2015
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General Motors Co will invest $1 billion in its Maharashtra plant as it plans to turn India into a new global export hub. The plant will churn out 10 new models for the American mark, Chief Minister of Maharashtra Devendra Fadnavis informed today at the Vidhan Bhavan.

Stating that the company was restructuring and consolidating its Indian operations to have a sustainable business, Mary Barra, chief executive officer, GM, said,

GM cannot remain a global leader without making a serious investment in expanding presence in growth markets like India.

General Motors also said it will cease production at its Gujarat plant to consolidate manufacturing operations in Maharashtra.

India`s automobile market has been sluggish for the past few years, with annual sales of less than 3 million cars. But by 2020 analysts expect India to become the world`s third-largest passenger vehicle market after China and the United States.

GM will launch 10 new domestically manufactured vehicles in India over the next five years in a push to double its market share in the country by 2020, Stefan Jacoby, GM`s chief of international operations, told a news conference. GM sold 56,700 vehicles in India in 2014 and had a market share of 1.8 percent.

GM seeks to change all that. The new investments, the Chief Minister said, would create 12,000 new jobs for GM and its suppliers in India. Despite expansion at Talegaon, the company’s India capacity will decline from 280,000 at two plants to 220,000 at one after restructuring.

Another US-based automaker Chrysler has assured investment of Rs 2,000 crore in the state, Devendra Fadnavis said. The investments can be seen as a direct result of the Maharashtra Chief Minister recent visit to the USA.

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