GM Near a Decision on India Strategy

General Motors Co. is close to revealing an updated plan to revive its struggling operations in India, sources tell Reuters.

The company announced a $1 billion strategy in mid-2015 that it predicted would double its market share to about 2.5% by 2020. Elements included selling one of its two assembly plants, overhauling its product lineup and turning India into a center for exports to Latin America.

But executing the plan has been delayed by an 18-month review. In the meantime, GM’s market share in India has continued to shrink, falling below 1% in 2016. The company’s sales last year plummeted more than 20% to 28,900 units in an overall market that expanded 7% to 3 million vehicles.

Reuters sources says GM still intends to sell its factory in Halol to China partner SAIC Motor Corp. and consolidate Indian operations at Talegaon. The two plants have annual capacities of 110,000 and 150,000 vehicles, respectively.

GM also is likely to shift its product mix from cars to more popular SUV/crossover vehicles, according to Reuters. It notes that GM said last autumn it plans to introduce five new models in India by the end of 2018.