General Motors, Ford and Fiat are reconsidering their plans for investment in India

General Motors, Ford Motor and Fiat Chrysler Automobiles, the big three US carmakers having their operations in India are said to be reconsidering their India strategy and investment plans.

It is mainly because if the ever-changing regulations and customer preferences that these companies have been unable to tap one of world’s fastest-growing automobile markets to their full potential. As per reports, they will either slow down with their investments, or return to the drawing board so that they can change their plans.

Talking of GM, it has stalled the plan of bringing the new Global Emerging Market platform to India, thereby holding the $1 billion potential investment that was planned. However, it would go ahead with the launch of the platform in other emerging markets.

"GM will continue with its next family of vehicles in global growth markets," a GM India spokesperson told ET. "However, the sourcing of components for India is being put on hold at this time while we conduct a full review of our future product programme."

Ford, on the other hand, has dropped the plan of launching the much-talked-about B500 platform that was to be developed at its upcoming R&D centre, to support the existing car portfolio.

When contacted, Fiat Chrysler stated the Indian automobile industry has been hit by a "suspended verdict," which is not good for company’s business here in this market. As per industry experts, the recent uproar over Supreme court's decision of banning diesel vehicles in Delhi-NCR has played a huge part in this decision. The sale of diesel cars have falled in all categories.

Also read: NGT’s order to deregister decade-old diesel vehicles will hit 1.8 lakh vehicles

Other than this, customers are also observing a trend in their preferences, given that their current demand is tilted towards compact SUVs, leading the companies not offering such vehicles in a fix.

Image source