General Motors, which has been having a difficult run in India over the last few years, with continued dip in monthly sales, has worked out a strategy that will give its business the desired push. The company has not only sketched out $1 billion investment plan for India, but is also consolidating its business. GM, which has already invested $1 billion in India since 1996, is shutting down production in its Gujarat (Halol plant) in a bid to consolidate business at its Maharashtra plant (Talegaon). Mary Barra, Chief Executive Officer, GM, shared with BusinessLine the company’s long-term India strategy, which will not only help it survive competition but earn revenues. Edited excerpts.

While you propose to invest $1 billion in India, you also plan to shut Halol plant. What is your long-term plan? What will happen to the workforce there?

We had to make significant change to make sure as we move forward we make profits. The Indian team along with the global team has looked on all facets of the business.

We are not closing down the Halol plant…we are ceasing production and we are going to look for other opportunities for that plant.

But, we have to be responsible for the workforce. Arvind Saxena’s (India MD) team has worked on it. We will do our best to take care of our employees there, whichever way we do it.

What would be the fate of products like Enjoy and Tavera being produced at that facility?

We are still working on it and not in a position to share any specifics except the announcement that we will cease production from second half of 2016.

When we say we are making a billion dollar investment in India means we are serious. We have been here for almost two decades and we have not made profits.

One of the critical things we need to do is to consolidate and become more efficient. But, the decision should not overshadow the very significant commitment we are making to the Indian market place – to invest $1 billion and have 10 new products over the next five years.

And, in partnerships with the suppliers’ base that will support this Group and create 12,000 new jobs as well as create an export hub that is consistent with ‘Make in India’.

We would also be working in partnerships with suppliers so that the products we drive are localised while having true Chevrolet DNA.

Will GM conceive, design and develop all the 10 new products in India or will there be any contribution from Shanghai General Motors Company or GM China?

These products will be designed by understanding customers’ requirements in key developing markets. We will have a flexible family of vehicles that we can specifically meet the needs of not only India, but also Mexico, Brazil and China.

This is where GM’s engineering expertise can come together. It will be very different from the past when we had products being sold in India which were already in China.

Will you be rolling out new products prior to these 10 products that will hit the market in 2017?

The Trailblazer will be launched this October in the premium segment.

It is not made in India, but from 2017 onwards, we will bring Indian made vehicles into the market.

It starts with the ‘Spin’ which is a SUV (seven-seater) and will compete with the Mobilio (Honda) as main competitor.

This will be followed by the entire new ‘Beat’ family – hatchback successor of today’s and all-new notchback, which will be attractive.

In 2018, we start with the new family, which we have in mind (with global investment) plus other models as well.

Yes, it takes time and we have to overcome this.

Don’t you think you are late, when others have already captured these segments?

We are confident of the strength of the Chevrolet brand, the DNA, and the beautifully designed products.

Where do we see GM globally by 2020? Has the GM or Chevrolet brand’s popularity taken a hit in India?

GM is on top tier from industry leading positions. But, our focus is on the profitable growth. We are not just chasing share, but are looking at how do we grow profitable and that is why you have seen us take a disciplined and well thought plan in India on how we can earn back customers and win the marketplace.

We are focusing on customer experience and I think that is the way forward. Network will be totally integrated, we will have right products. In fact, this will be the first time that we will have products designed keeping Indian consumers in mind.

That is the right way for building a brand for long-term basis — when we make sure that customers are given right experiences, right product and we are naturally giving them right quality.

Do you plan to open new showrooms for premium products like Trailblazer?

We are not looking at any further increase (dealers) right now.

We are in a situation where we would improve the quality of our network and experience part of the network – how customers are handled.

We don’t have any plan of creating two different channels or increasing number of channels right now.

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