After Beat, GM to build another vehicle in India aimed at global markets

General Motors has been ranked as the fourth-largest passenger car exporter from India for the period of April-August 2018

Amid rumours that US-based carmaker General Motors (GM) is in advanced talks to sell its manufacturing facility in Pune, the company said that India would continue to be an important and exclusive destination to source small sub-4 metre cars for its global market. 

The company, which currently produces one model -- the Beat, in this facility, is planning to manufacture one more product in India for the global markets.   

There were reports that the company was in talks with JSW Energy to sell its Pune facility and that it was valued at around Rs 30-35 billion. 

After unveiling a locally-built prototype electric vehicle (REEV), designed exclusively for the national REEV student competition, at FISITA World Automotive Conference in Chennai, Daniel E Nicholson, vice-president (global propulsion systems), said that India's strength was frugal engineering, cost-effectiveness and smart people.   

While refusing to comment on reports that stated the company plans to sell its Pune facility, he said that for GM, India was an important part in product developments. Nearly 85 per cent of the global products, in some way or the other, has an Indian touch. 

The company employs around 2,500 engineers, who are based in Bengaluru. They are playing a crucial part in power-train, infotainment, engine design, parts of tyre, etc. 

Sources in the company said that at present, the one product manufactured in the country is mostly exported to Latin America and Vietnam. 

Soon, the company will start manufacturing a new product, which will be manufactured in India for export markets.

India is, and will be, an exciting production centre for sub-4 metre vehicles, said an official.

In May 2017, GM announced its plans to stop selling cars in the domestic market by December 2017, as part of its global strategy. Further, it announced that it would use its local manufacturing base at Talegaon, near Pune, to focus on export markets. 

The company had two plants in India. Last year, the company decided to close down its plant in Halol, Gujarat, due to lukewarm response for its cars. However, it retained the Talegon plant in Maharashtra for exports. 

At present, it has been ranked as the fourth-largest passenger car exporter from India for the period of April-August 2018 and exported 34,981 vehicles.