Passenger carmaker General Motors India has announced that it will stop selling its cars in India by the end of 2017, and focus on exports, which already claims over 90% of its production here.
The company used to sell eight models under the Chevrolet brand — Spark, Beat, Sail, Sail Hatchback, Enjoy, Tavera, Cruze and Trailblazer — in the country, when the announcement was made.
GM India president and managing director Kaher Kazem said,“I can now confirm that GM India is making significant changes. The decision to stop sales in India has been in the making for months. Although tough, it was a necessary decision,” adding that this move effectively kills the company’s plans to introduce more models in India this year.
The decision is a culmination of the company’s comprehensive future product plans, and the misalignment of its original investment plans and the market opportunity here. “It would not help the company deliver significant returns or achieve leadership position in India,” Kazem said.
The company will now focus on improving its financial performance, backed by its strong exports, he said. GM India has tripled its export business over the past year, with the key markets being Mexico and Central and South America. While the company saw its sales dip nearly 21% in 2016-17 to 25,823 units, its production grew about 16% to 83,368 units, most of which were exported.
GM India had already begun consolidating its operations earlier this year by shutting down manufacturing at its Halol facility. Going forward, its assembly unit in Talegaon will remain an export hub, just as General Motors Technical Center in Bengaluru will see no impact from the announcement. “The move will have no impact on the technical centre in Bengaluru as it caters to General Motors’ global work,” he said.
About 400 employees (8% of its total workforce in India) are expected to see the impact of GM’s move to stop sales in India. Kazem expressed that the company will continue to provide comprehensive after-sale services to Chevrolet customers here, and has a charted a programme for its dealers as well.
Published 18 May 2017, 20:41 IST