GM to stop selling vehicles in India, focus now on exports

GM will stop selling its Chevrolet vehicles in India

The said rumours suggest that while General Motors will stop selling Chevrolet cars in India, it will still go ahead and launch the facelifted model of the Beat hatchback.

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.

"We determined that continued or increased investment in manufacturing in South Africa would not provide GM the expected returns of other global investment opportunities", Jacoby said in a statement. GM sold just 49,000 vehicles in India and South Africa combined previous year.

Jacoby said the required investment to maintain manufacturing in South Africa could deliver better returns if invested elsewhere. The company said it expects to incur a one-time charge of approximately US$500 million as a result of the restructuring. The Detroit automaker will pull out of the Indian market nearly entirely, and will sell off its operations in South Africa to Isuzu in an effort to focus money and engineering in more profitable markets. Earlier this year, GM agreed to sell its Opel Group to Peugeot and leave the European market. Presently the company sells the Tavera, Cruze, Enjoy, Beat, Sail twins and the Trailblazer SUV in India.

"As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company", said company's chairman and chief executive Mary Barra in a statement. GM's International Operations, aside from China, have been a drag on the company's earnings for several years.

The National Union of Metalworkers of South Africa has announced it will consult its lawyers based on suspicions that "shareholders got a very good deal at the expense of workers" following General Motors' announcement it would pull its operations out of South Africa.

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. The company will also continue to operate its technical centre in Bangalore in order to support its exports as well as global operations.

GM's Halol plant was in operation since 1996 but closed its doors on April 28, 2017. Although it will stop selling cars in the country, GM will continue to operate its tech centre in Bengaluru while its Talegaon plant in Maharashtra will be converted into an export-only factory.

IHS sees the country as the world's third-biggest auto market in 2020, trailing only the USA and China.

Kaher Kazem, President and Managing Director of General Motors India, said, " General Motors India's export business has tripled over the past year. SAIC cars were Chinese cars with the Bowtie logo on the grille and were being sold in hope that the logo will be enough to convince the consumer.

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