the US-based carmaker is in advanced talks with JSW Energy to sell the Pune facility valued at around Rs 3,000-3,500 crore.
General Motors has been in India since 1996 subsequently building two factories to manufacture, sell and export out of the country. Even after plans to invest $1 billion more, in 2017, GM closed its factory in Halol Gujarat. Now, according to Mint, JSW Energy is looking to buy GM's Pune facility marking the company’s exit from India.
According to the report, the US-based carmaker is in advanced talks with JSW Energy to sell the Pune facility valued at around Rs 3,000-3,500 crore. This includes the land cost, an engine assembly line and a car assembly line.
Sajjan Jindal-led JSW Energy intends to enter the electric car market with an electric vehicle of their own code-named JSW car. According to the report the JSW wants to manufactured the car at the Pune plant and is plans to be sell the model Rs 10-15 lakh.
The Pune facility is currently in use by GM for the manufacture of some models of its Beat hatchback which is exported. The facility is spread over 300 acres of land capable of annual production capacity of 130,000 vehicles.
JSW's foray into electric vehicle manufacturing would be a major diversification for them, especially considering the company is mainly a power producing company. To head the electric car vertical, JSW Energy has also appointed former GM veteran Sergio Luiz Pegoraro Rocha as Chief Executive.
"If this thing (sale of the Pune plant to JSW Energy) materialises, sooner or later, it is clear indication that GM will wind up its operations for exports also," Anil Sharma of MarketsandMarkets, a Pune-based consulting firm told Mint.“Globally, GM is on a cost rationalization drive, but I must say that it is an indication of headwinds for other industry players, mostly global (original equipment makers), who have very high cost structure,” he added.