American car maker General Motors India has announced that it will stop selling cars in India by the end of this year. The company has been struggling to get good numbers in the market for a long time now and henceforth it will focus on its growing vehicle export manufacturing operations from India.
The company had already ceased manufacturing at its Halol Assembly Plant in Gujarat in April this year while its second plant in Talegaon near Pune will be exclusively used for making products for exports to other markets.
Kaher Kazem, GM India president and managing director, said the focus for the GM India manufacturing base at Talegaon will be export markets, upcoming export vehicle launches and exploring longer-term strategic options.
“GM India’s export business has tripled over the past year,” Kazem said. “Exports will remain our focus going forward as we continue to leverage India’s strong supply base. We recently launched the new Chevrolet Beat hatchback for export to Mexico and Central and South American markets and will launch the Chevrolet Beat sedan later this year for those markets.
“We will support our affected customers, employees, dealers and suppliers,” Kazem said. “Chevrolet owners can be assured that we will continue to honour all warranties and provide comprehensive after sales support.”
According to the company the decision follows a comprehensive review of future product plans for GM India, is part of a series of actions taken by General Motors to address the performance of its operations worldwide. GM India informed employees of the decision today.
The company says it will work closely with affected customers and dealers on a transition plan. The customer support center will remain open and all warranties and service agreements, as well as ongoing service and parts requirements for all vehicles, will continue to be honored. The GM Technical Centre-India (GMTC-I) in Bengaluru that performs global work for the company will not be impacted by this announcement.