General Motors to stop selling cars in India
By Jonathan Ananda | Express News Service | Published: 19th May 2017 12:48 AM |
CHENNAI: One of the earlier foreign entrants in the Indian automobile market, General Motors (GM) has decided to call it quits. On Thursday, GM said it would halt all sales of cars in India, phasing out its Chevrolet brand by year-end. However, its manufacturing plant in Talegaon will continue to produce vehicles for export purpose.
GM has assured current owners of its cars that all support and aftermarket services will continue to be taken care of.
According to experts, GM’s decision is owing to the brand’s inability to crack the larger Indian market, despite seeing some success in models like the Chevrolet Beat and Tavera.
However, declining performance has forced GM to focus its India efforts primarily on manufacturing and exporting. “As the industry continues to change, we are transforming our business establishing GM as a more focused and disciplined company,” said chairman and CEO Mary Barra. The paring down of operations is not confined to India. GM announced transitioning its East and South Africa operations to Isuzu Motors and phasing out the Chevrolet brand in both the markets.
The consolidation has its positives for the firm. The India arm’s sale has been declining, selling just 25,823 units last fiscal and its market share stands at just 0.85 per cent. However, the exports from its India operations surged 89 per cent during the same period to 70,969 units.
“In India, our exports have tripled over the past year, and this will remain our focus going forward,” said Stefan Jacoby, executive vice-president and president, GM International.