General Motors India will shut its Halol facility in Gujarat from April 28, 2017, the company confirmed in a statement on Tuesday.
“General Motors India today confirmed that it will cease production at its Halol manufacturing facility on April 28, 2017, as the company consolidates manufacturing at its Talegaon facility. We will support our employees at the Halol plant throughout this transition,” Kaher Kazem, GM India president and managing director, said in a statement.
The American giant is discussing a partnership with Chinese automaker SAIC over sharing assets of the Halol factory for making cars in India. SAIC, formerly Shanghai Automotive Industrial Corporation, will take over the plant’s operations as it plans to enter India soon.
Twenty-one years ago, Detroit-based General Motors started producing Opel cars -- Corsa and Astra -- at the Halol plant near Vadodara which had an annual production capacity of 110,000 volumes. The automaker also owns another assembly line in Talegaon near Pune with a capacity of 170,000 annual volumes.
GM India launched the Chevrolet in India in 2003. Small hatchback Beat and multi-purpose vehicle Tavera were among the bestsellers for Chevrolet in their segments.
GM India also bought out the bankrupt South Korean automaker Daewoo Motors, in 2001.
But Chevrolet India’s failure with other models such as Cruze, Sail and Trailblazer hit the automaker badly. The sting was not treated in time and Chevrolet India went into coma.
As the market share dwindled further, General Motors India put on hold its $1 billion investment for expansion which it had announced in 2015.
Not just India, the Detroit carmaker has been struggling globally as well. On Monday, GM sold its two beleaguered European brands -- Opel and Vauxhall -- to France-based PSA Group in a $2.3 billion deal.
(With agency input)