General Motors stops selling cars in India

GM India has today announced that the brand would stop selling cars in India. Chevrolet, the only brand from the manufacturer, will cease the sales of vehicles in India on 31st December 2017. Chevrolet will continue to offer after-sales network at the key locations across the country. In India, the brand will continue to produce Beat and Essentia for the export markets.

General Motors stops selling cars in India

Chevrolet entered the Indian market in 2004. Since then, Chevrolet could not capture more than 1% of the market. Chevrolet said the decision was taken as a part of the restructuring process. Chevrolet sold only 25,823 units in the country last year, but the brand’s export numbers rose sharply in the same period.

“We are not giving up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is extremely competitive,” Stefan Jacoby, GM’s chief of international operations, said in an interview.

Indian market is set to overtake the Japanese market regarding size in the next decade, but GM says that Chevrolet will not be marketed in India anymore. Chevrolet will also maintain its technical centre in Bangalore. Chevrolet will make the Talegoan plant an export-only factory while the Halol plant will be handed over to GM’s Chinese partner SIAC Motor Corp.

GM India exports products to Mexico and Latin America. GM will continue to use its other main export hub in Korea for exporting vehicles to North America, Southeast Asia, Austrailia and Pakistan.

The company will continue to provide after-sales network and trained service professionals across Indian locations. Chevrolet India will also honour the warranties and extended warranties taken by the customers.

“Chevrolet India is committed to maintaining a service network across key locations with staff trained to take care of all the needs of your Chevrolet for repair and maintenance. We will continue supporting Chevrolet customers with service and spare parts and honouring warranties,” the company said.

GM’s customer service will provide 24X7 support to the customers. Chevrolet car dealers say that General Motors have not communicated the next steps to them.