General Motors has halted its plans to invest $1 billion in India. Here’s why

General Motors is struggling to make a turnaround in India and because of that, the company has decided to put a hold on investments on new models for the country as the US auto major undertakes a full review of its future product portfolio here.

In 2015, the company announced that its plans to invest $1 billion so as to enhance manufacturing operations and roll out 10 locally produced models. Now it has halted the plan and has not put any timeline for lifting freeze on investments on the new products.

"...given the shift in customer preferences in India, we are conducting a full review of our future product portfolio and have put on hold future investment in our all-new vehicle family for the market until we firm up our product portfolio plan,” a General Motors official spokesperson, told ET.

The company, whose Indian arm has managed to cut its net loss to Rs 1,003.39 crore in 2014-15 from Rs 3,812.46 crore in 2013-14, will now focus on "sustainable profitability, in the country.