The Indian operation of General Motors is sinking with losses mounting to over Rs 1,100 crore during 2015-16, while revenues have grown around Rs 2,500 crore and net worth is Rs 249 crore. General Motors, which commenced operations in India in 1995, is witnessing some of its worst days as it struggles to keep itself afloat among increasing competition from relatively newer players like Renault and legacy car makers such as Maruti Suzuki. The Detroit-headquartered car maker last year said it is putting on hold its $1 billion investment plan in India which could result in the delay of launching new models. GM had said that it will not bring its global emerging market platform to India because of huge losses incurred by the Indian operations.
General Motors last year told the Gujarat government that it is shutting down its Halol plant which has a capacity to produce 1.27 lakh units per year. The other plant of GM is based out of Talegoan in Maharashtra which can manufacture 1.6 lakh units. It has also put up for sale, the Halol plant from which it expects to get Rs 1,500 crore.
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