The end of the year 2017 will also see the end of General Motors – that is, Chevrolet – cars on sale in India. The US-based manufacturer announced that while export efforts will continue from the country, there will be no more GM cars on sale come 2018.
Stefan Jacoby, GM executive Vice President and President of GM International, explained the motivations behind this decision, saying, “We explored many options, but determined the increased investment originally planned for India would not deliver the returns of other significant global opportunities. It would also not help us achieve a leadership position or compelling, long-term profitability in the domestic market. Difficult as it has been to reach this decision, it is the right outcome to support our global strategy and deliver appropriate returns for our shareholders.”
The decision has clearly been taken with GM India’s contribution (or lack thereof) to the profits of the parent brand in mind, and GM hope that this drastic move will help right the balance – “Our decision in India is an important milestone in strengthening the performance of our GM International operations and establishing GM as a more focused and disciplined company,” added Jacoby.
GM still have a strong manufacturing presence in India with the company recently moving operations to its plant in Talegaon, Maharashtra. These manufacturing operations will continue, as Kaher Kazem, President and Managing Director, GM India, explained, “GM India’s export business has tripled over the past year.
“Exports will remain our focus going forward as we continue to leverage India’s strong supply base. We recently launched the new Chevrolet Beat hatchback for export to Mexico and Central and South American markets and will launch the Chevrolet Beat sedan later this year for those markets.
“We will support our affected customers, employees, dealers and suppliers. Chevrolet owners can be assured that we will continue to honour all warranties and provide comprehensive aftersales support.”
