General Motors to stop sales in India by year end
NEW DELHI: US auto giant General Motors will stop selling cars in India by year end, it said Thursday, putting the brakes on efforts to penetrate one of the world’s fastest growing markets.
The firm announced it will phase out its Chevrolet brand by the end of 2017 as part of a restructuring of its international business, but will continue to manufacture cars in India for export.
GM has been in India for several years but continues to be a niche player with a negligible market share, experts say.
It has two factories — one in Talegaon which will continue as an export hub for Mexico and the Central and South American markets — and another in Halol in Gujarat, which it said it plans to sell. “In India, our exports have tripled over the past year, and this will remain our focus going forward,” said GM International president Stefan Jacoby in a statement.
“We determined that the increased investment required for an extensive and flexible product portfolio would not deliver a leadership position or long-term profitability in the domestic market.” About four million cars were sold in India last year, a number that is expected to hit seven million by 2022, making it one of the fastest growing markets globally, said consulting firm PwC.—AFP
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