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Chevrolet to stop selling cars in India, focus on exports

Chevrolet to stop selling cars in India, focus on exports

General Motors said today it plans to stop selling all cars in India and shed its operations South Africa by the end of this year, a move that continues the automaker's retreat from parts of the world where its profits were lagging so it can focus on profitable regions.

In April, it had announced that it will stop production at its Halol facility.

Kazem also emphasised that the shift will not affect existing Chevrolet owners and dealers, saying, "We will support our affected customers, employees, dealers and suppliers".

"By shutting down operations in South Africa this will have a major impact not just on GM plants, but for companies along the value chain as well".

'As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company, ' said GM Chairman and CEO Mary Barra. However, struggling to make a turnaround in India, the company put on hold the plan and undertook a full review of its future product portfolio here.

The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. The Talegaon plant has a production capacity of 130,000 vehicles a year.

Isuzu already has a strong presence in the country, having started operations here over 44 years ago, and Haruyasu Tanishige, Senior Sales Executive Officer for Isuzu Motors, says the company remains committed to strengthening the local market.

In South Africa, GM said Isuzu will buy GM's plant in Struandale, its 30 percent shareholding in the Isuzu Truck South Africa joint venture and a GM distribution center.

The GM Technical Centre-India (GMTC-I) in Bengaluru performs global work for GM.

A second plant in the western state of Gujarat, where GM ceased manufacturing last month, will likely be sold to its Chinese partner SAIC Motor, which is bidding to enter the crowded but promising Indian market. Across affected markets, GM is working with employees, their union representatives and local authorities to provide transition support. GM will withdraw sales of the Chevrolet brand from the market. It sold around 10 million cars in 2016. Profits from China put that unit in the black, but the rest of those markets, including India, South Africa, the Middle East and several Asian countries, lost a combined? However, the U.S. auto major became majority partner by buying 43 per cent from SAIC in 2012.

So how did one of the world's largest carmakers fail to even moderately succeed in a booming auto market such as India?