GM India: 2015-16 losses are FOUR times its net worth

General Motors is currently in a rut in the Indian market. The American automaker's Indian arm has recorded a loss of over Rs. 1,100 crore during 2015-16. Interestingly, the net worth of the Indian operations of General Motors is just Rs. 249 crore. As a result, the losses are over four times of the company's net worth in the country.

General Motors has been present in the Indian market for over two decades. However, the company, which was at one time the largest car maker in the world, hasn’t been able to offer the right set of products for the Indian customers. The lack of any new launches for the past two years (except the low-volume Trailblazer) has made matters worse for the manufacturer.

Chevrolet currently is on 10th position in the Indian market in terms of sales. It sold 3,020 units during the last month. The company has a meagre market share of 1.34%. Dominance of larger market players like Maruti and Hyundai, and new entrants like Renault in the budget segment has further negatively affected Chevrolet's market share in the country.

The company had earlier announced plans to invest $1bn in India and launch 10 new models by 2020. However, these plans were later put on hold owing to continuously falling sales numbers. As an attempt to revive its falling sales graph, Chevrolet is planning to launch the Beat facelift and the Essentia compact sedan in India this year.

Source: The Hindu