General Motors to invest $1 billion in India where sales are going downStaff writer ▼ | July 30, 2015
General Motors will invest $1 billion over the next few years to turn India into a global export hub, even as it cuts production capacity in the country.
Auto industry GM will cut production in India to 220,000 cars
"We need to have that kind of consolidation and rationalization to make sure we are here for the long term, that we have a sustainable business," CEO Mary Barra told reporters in New Delhi.
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.
General Motors' sales are falling and it is still losing money. GM lost 38.5 billion rupees ($604 million) in India in the year to March, a company filing with the corporate affairs ministry showed.
GM is confident of building a profitable business in India, Barra said, but did not give a timeline. ■