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Recently, Toyota has decided not to go further with any fresh investment in the Indian market. And now, the American auto giant, General Motors has also made up its mind to hold back the earlier announced 1.0 billion USD (INR 6,713 Crore) investment in India after sales drop by forty percent.
Though, the theories behind this change in strategy of both the automakers are entirely different from each other. If the report from ET NOW is to be believed, the General Motors has decided not to limit India just as an export hub, but also to raise a profitable domestic business.
Whereas, Many automobile manufacturers have been affected by the recently introduced implications on the diesel-powered cars in India. Especially, Toyota has the two best selling models in India, Innova Crysta and Fortuner, and both are powered by over 2,000 cc diesel unit, due to which they can not be sold in Delhi or NCR and several other major cities in the country. So the Japanese automaker decided to freeze the investment in the country.
Back to the General Motors, the company had announced a new GEM (Global Emerging Market) platform, which is mainly developed to manufacture entry-level compact cars. The compact cars are high on demands in the emerging markets such as China. Brazil and India.
Swati Bhattacharya a spokeswoman at GM India replied an emailed statement, “We are conducting a full review of our future product program in India. As a result, we are also putting on hold future investment in our all-new vehicle family in India until we firm our product portfolio plan.”
In this year’s Auto Expo, Chevrolet had showcased the sub-compact sedan, Essentia and the Activ crossover. As the American automaker is not only the one which is fighting to leave a lasting mark on the Indian passenger market that is considered to be the world’s No. 3 by 2020, brands like Volkswagen, Toyota have also struggled to raise their market in India.
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