General Motors to shut its Gujarat’s Halol plant to double Maharashtra plant’s capacity. General Motors, struggling to sell its vehicles in India, will shut its Halol plant in Gujarat that makes the Tavera and Enjoy models by the second half of 2016. But the company said it plans to invest $1 billion in India by 2020.
In 1996, General Motors was one of the first automobile companies to set up a manufacturing plant in Gujarat. Since then, the state now boasts of being home to Tata Motors, Honda Motorcycles, Maruti Suzuki, Ford India, and Scooter India, with Hyundai India, Honda Cars and Force Motorslikely to set up plants in Gujarat in the foreseeable future. The Halol plant employs 1,100 and the company said it’s “talking” to them. Vendors will largely maintain their staff, the company said.
The company wants to increase capacity at Talegaon to 220,000 vehicles by 2025.