GM India shuts down its Halol plant

General Motors began vehicle manufacturing operations at Halol in Gujarat twenty one years ago. The plant shutting brings an important chapter in Indian automotive history to a close. The company will now consolidate all its operations at its Talegaon plant in Pune, which opened in September 2008.

GM’s CEO Mary Barra’s had said in a media statement made on an earlier visit to India in 2015 that, “Consolidating our manufacturing in a single location in India will support the long-term sustainability of our business in a challenging emerging market.”

The Tavera was the last vehicle to roll off the lines at the Halol plant. The facility had a manufacturing capacity of 110,000 units per annum. GM suspended manufacturing of its Cruze sedan at the facility some time ago, but the Enjoy MPV was stopped only in June 2016 due to poor sales.

Talegaon, which currently has a production capacity of 130,000 vehicles and 160,000 engines per annum, will increase its base capacity to 220,000 vehicles by 2025. This facility will also become a global export hub for GM – it’s targeting over 30 percent of its annual production for markets outside India.

In an official statement, GM India president and MD Kaher Kazem said, “The consolidation of manufacturing at our Talegaon facility is an important milestone for GM India,” said Kazem. “That said, we are mindful of the impact on our employees at Halol. We have committed to support them through this necessary transition with generous separation payments or the option of continuity of employment at Talegaon.”