According to company sources, General Motors has shelved a new car platform and is reexamining a planned $1 billion investment in India.
In 2015, the manufacturer announced that it was making the investment in an effort to increase its market share and position the country as an international export hub. As part of that commitment, GM was planning to introduce a modular platform for building low-cost cars and to launch the Spin multi-purpose vehicle.
GM is however, reassessing its strategy in India as a result of slumping sales and more stringent government regulations imposed on vehicles equipped with diesel powerplants.
Through the end of March, the automaker’s market share stood at less than 1 percent, with year-over-year sales dropping close to 40 percent.
Jack Uppal, vice president of marketing at GM India, indicated that GM is now concentrating on introducing a crossover to the market and remains committed to launching the Beat Activ hatchback and Essentia sedan in 2017.
GM’s reevaluation of its strategy in India comes on the heels of restructuring initiatives throughout Asia Pacific. In 2015, the automaker announced that it was closing an assembly plant in Indonesia and ending production of the Chevrolet Sonic in Thailand as it transitioned to supplying the market with more SUVs and pickup trucks.