General Motors Co on Thursday said it will stop selling cars in India by the end of the year. The Detroit carmaker sells its Chevrolet brand in India, deemed to be one of the world’s most competitive markets for vehicles.
However, the company is not leaving India entirely – it will continue manufacturing in the country. It said it would focus on “export manufacturing options”, ANI reported. “We are not giving up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is extremely competitive,” said Stefan Jacoby, GM’s chief of international operations, Reuters reported.
GM currently has two manufacturing plants in India – in Talegaon, Maharashtra, and Halol, Gujarat. It also has a tech office in Bengaluru. The company will sell its Halol plant to joint venture partner SAIC Motor Corp and keep its Talegaon plant, Reuters reported. The report quoted GM global president Dan Ammann saying the announcement effectively cancels much of the company’s plan in 2015 to invest $1 billion in India. This might come as a blow to the government’s Make in India initiative.
The company also said it is selling its operations in South Africa, as part of its efforts to focus on “fewer, more profitable markets”, according to Reuters. They will also let go of some employees at their international headquarters in Singapore.
Last year, Ford Motors had exited India.