General Motors pulls out of Gujarat's Halol plant, shifts all operations to Talegaon facility

US auto major General Motors has pulled the plug on its Halol plant in Gujarat, bringing to an end its 21-year run in the state.

Announcing the exit of the carmaker from the plant, GM India President and Managing Director Kaher Kazem said: "The consolidation of manufacturing at our Talegaon facility is an important milestone for GM India."

GM will now focus and consolidate the entirety of its operations at its Talegaon plant in the city of Pune in Maharashtra.

The Halol plant, with a capacity of 110,000 units a year, was launched in 1996 and produced models like the Tavera, Enjoy and Cruze.

Chevrolet Tavera was the last vehicle to be produced at the Halol plant on Friday, April 28. The Talegaon facility currently has a production capacity of 130,000 vehicles.

GM had announced its plans to exit from the Halol plant in 2015. At the time of its closure, GM's Halol had around 600 employees. Some of them have been transferred to Talegaon. The company has made a raft of additional support measures for both the employees who opted for the significantly enhanced separation payments and those who will transfer, including tax and financial advice and pre-transfer visits to Talegaon, for smooth transition from its facility in Gujarat.

"We are mindful of the impact on our employees at Halol and have committed to support them through this necessary transition with generous separation payments or the option of continuity of employment at Talegaon," Kazem added.

Interestingly, GM's exit from Halol adds another twist to its Indian odyssey coming at a time of rumours about the brand's exit from the country. Although rumours were rife that Shanghai-headquartered multinational auto manufacturer SAIC had taken over the Halol plant, the company has refuted the claim. It has also clarified that it has not signed any formal agreement with GM for the Halol plant.

At Talegaon, GM now makes export models like Chevrolet Beat and is expected to add its upcoming models in India -- the new Beat and Essentia compact sedan. GM also exports its brands to Mexico, Chile, Peru, Central American and Caribbean countries, Uruguay and Argentina.