General Motors has put investment plans in India "on hold" as the US auto major struggles to make a business case due to constantly declining sales, low production and a portfolio that will shrink to just one model from May.

As the company shuts down operations at its Halol factory in Gujarat from next month, speculation is rife that it may review operations at its Talegaon facility in Maharashtra and could give access of the factory to the PSA Group, the European car major that owns Peugeot and Citroen.

Sources said General Motors is carrying out a thorough review of its India business and a potential partnership with the PSA Group is being seen as one of the options.