GM to stop making cars for Indian market

GM to stop making cars for Indian market

General Motors (GM) has announced that it will stop making cars for the Indian market by the end of 2017.

The firm, which sells its Chevrolet brand in India, said it would continue to provide maintenance services.

It also said that its plant in Maharashtra would continue to make cars for overseas markets, mainly central and south American regions.

GM has announced similar plans for South and East African markets as part of its global business restructuring.


The US carmaker said it would stop selling cars in South Africa, and sell its manufacturing business there to Isuzu Motors.

It added that Isuzu would also purchase 57.7% shareholding in its East Africa operations, assuming management control.

The firm is aiming to make significant savings through these steps.

"As a result of these actions, GM expects to realise annual savings of approximately $100m (?77m) and plans to take a charge of approximately $500m in the second quarter of 2017," it said in a statement.

GM's announcement comes against the backdrop of predictions that India will become the world's third biggest vehicle market by 2020.

But the firm has put faith in exports from India.

"In India, our exports have tripled over the past year, and this will remain our focus going forward," GM International president Stefan Jacoby said in a statement.

GM had planned to invest $1bn in India to boost its domestic presence, but its sales figures fell below below 1% in the year ended in March 2017.

"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," Mr Jacoby added.



Add Comment

all comments

  Other news

more
Richard Hammond sends fans WlLD as he gets back 'into the driving seat' with souped-up mobility scooter just weeks after near-death crash

Richard Hammond sends fans WlLD as he gets back 'into the driving seat' with souped-up..

25-Jun, 05:30

Richard Hammond has revealed a mobility scooter like no other following a...

Iran's drug problem: Addicts 'more than double' in six years

Iran's drug problem: Addicts 'more than double' in six years..

25-Jun, 11:26

The number of people suffering from drug addiction in Iran has more than...

Exclusive: Binky Felstead and Josh Patterson reveal their baby girl's name!

Exclusive: Binky Felstead and Josh Patterson reveal their baby girl's name!..

25-Jun, 13:06

In their first exclusive shoot and interview since welcoming their...

Car hits pedestrians at Eid event in Newcastle, 5 casualties, ‘not believed to be terror’

Car hits pedestrians at Eid event in Newcastle, 5 casualties, ‘not believed to be terror’..

25-Jun, 06:00

A car has plowed into people gathering for Eid prayers near a Newcastle...

US stocks open mixed as banks fall while tech companies rise

US stocks open mixed as banks fall while tech companies rise..

20-Mar, 11:50

Major U.S. indexes are little changed in early trading Monday as...

Trump signs $110 billion arms deal in Saudi Arabia

Trump signs $110 billion arms deal in Saudi Arabia..

20-May, 11:48

President Trump signed a $110 billion arms deal with Saudi Arabia on the...

Showbiz Korea Episode 1571

Showbiz Korea Episode 1571..

16-Mar, 08:38

The following Showbiz Korea Episode 1571 English Sub has been released....

I’m Sorry Kang Nam Goo Episode 38

I’m Sorry Kang Nam Goo Episode 38..

09-Feb, 23:26

The following I’m Sorry Kang Nam Goo Episode 38 English Sub has been...