General Motors India has announced to cease all domestic sales by the end of 2017. However, the company will focus on growing its export manufacturing in India.
General Motors India has announced that the company will only focus on growing its vehicle export manufacturing. By the end of 2017, GM India will cease all domestic sales across the country.
General Motors made the final decision following comprehensive review of product plans for GM India in order to meet the company’s long-term global plans. The company decided that the only remaining approach to drive shareholder return from India will be through the export route.
Stefan Jacoby, GM executive vice president and president of GM International, said, “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.”
On April 28, 2017, GM India ceased manufacturing at its Halol assembly plant and is now in the process of selling the assets of the facility. Following this announcement, GM’s second plant in Talegaon will remain an export hub, after the company ceases domestic sales later this year.
“GM India’s export business has tripled over the past year,” Kaher Kazem, GM India president and managing director, said. “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.”
GM India has assured that support for affected customers, employees, dealer and suppliers will be provided. Kazem stated that “Chevrolet owners can be assured that we will continue to honour all warranties and provide comprehensive aftersales support.”
GM India customer support centre is said to remain open and all warranties and service agreements, as well as ongoing service and parts requirements for all vehicles, will continue to be honoured. the company website will offer further information.
General Motors also has a Technical Centre stationed in Bengaluru which caters to global requirements of the company will not be impacted by this decision.