GM will stop selling cars in India

Barsaba Taglieri
Mag 19, 2017

In addition to stopping sales in India, where the company sold just 29,000 vehicles a year ago, GM also said it is selling its plant and remaining 30% interest in a manufacturing operation in South Africa to joint-venture partner Isuzu.

While the Talegaon plant will be used for export-bound cars only, the company is seeking buyers for its Halol unit, which ended production in April. The company also announced transitioning its East and South Africa operations to Isuzu Motors and phasing out the Chevrolet brand in those markets too.

"Our decision in India is an important milestone in strengthening the performance of our GM International operations and establishing GM as a more focused and disciplined company", said Jacoby.

The Detroit automaker said on Thursday it will take a $500 million charge in the second quarter to restructure operations in India, Africa and Singapore.

GM International President Stefan Jacoby expanded on Barra's comments by revealing the company determined the amount of investment required to offer an extensive product lineup in India wouldn't lead to long-term profitability.

General Motors (GM) has announced that it is "transforming" its business globally and, as a result, will be pulling out of South Africa. Get twice-daily updates on what the St. Louis business community is talking about.

GM's exports from India - mainly to Mexico and Latin America - almost doubled to 70,969 vehicles during the fiscal ended March 31.

The move also scuppers the company's 2015 plan to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a global emerging market (GEM) programme.

GM entered the Indian market in 1996, offering over the years such Chevrolet models as the Spark, the Beat, the Sail, the Sail Hatchback, the Cruze, the Enjoy, the Tavera and the Captiva.

Manufacturing of Isuzu's will continue as Isuzu will be purchasing GM's light commercial vehicle operations in Port Elizabeth. Considering the Talegaon plant has a capacity 130,000 vehicles per year, its recasting as an export plant should be feasible for the foreseeable future.

As regards support to existing GM India and Chevrolet auto owners in India, Kazem said: "We will support our affected customers, employees, dealers and suppliers". It sells vehicles under the Chevrolet brand in India.

Kazim further said that customers need not worry about the parts of the GM cars that they have sold in India as the parts will still be available to customers long after it stops domestic sales in India.

India has been present in the country for the last two decades but has had less than a two per cent of the market share.

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