News Worms
News Worms

Chevrolet to pull out of India, South Africa

Chevrolet to pull out of India, South Africa

India has around 6,000 employees and management said around 400 of these, or about 8%, will be laid off gradually. GM India's press note says that General Motors International had reviewed the performance of its Indian arm throughout 2016 and deemed it profitable to carry on exclusively with its exports rather than concentrate on selling its products here. GM would also withdraw sales of the Chevrolet brand from the market.

In an interview with the news agency, GM President Dan Ammann explained that the company's plans to exit unprofitable markets - previous year GM's global business lost about $800 million - formed part of its strategy to better capture growth opportunities in more prosperous regions where the company is already a market leader.

"Light vehicle sales are in recovery mode since the negative consumer sentiment is subsiding with the easing cash situation, and buyers are slowly returning to the market in the aftermath of the government's demonetization drive in the final months of 2016", LMC Automotive said in a March report. Its production, however, grew about 16 per cent to 83,368 units most of which were exported.

The decision follows GM's decision to sell its European division to French automaker PSA Groupe last month, the automaker's decision to discontinue sales of mainstream Chevrolet models in Europe in 2015, to exit Russian Federation in 2015 and end manufacturing in Australia in 2016.

According to Dan Ammann, the Global President of GM, the decision on Thursday will cancel all the plans that the company revealed in 2015 including investing $1 billion to roll out new design architecture and build new vehicles especially for the Indian market. Global auto industry leaders are finding it tough to compete with the larger domestic incumbents such as Mahindra & Mahindra Ltd, Maruti Suzuki India and Hyundai, all of whom have seen profits improve in the last couple of years.

"After a thorough assessment of our South African operations‚ we believe it is best for Isuzu to integrate our light commercial vehicle manufacturing operations into its African business‚" GM's vice-president of its worldwide operations‚ Stefan Jacoby‚ said in a statement on Thursday morning.

American carmaker General Motors today announced its decision to end the sale of Chevrolet cars in India.

India president and managing director Kaher Kazem said,"I can now confirm that GM India is making significant changes".

Kazim said for those who have already booked a GM vehicle will be contacted regarding what their decision going forward will be. GM's Chevrolet brand will be phased out of India and South Africa by the end of 2017. Considering the Talegaon plant has a capacity 130,000 vehicles per year, its recasting as an export plant should be feasible for the foreseeable future. "GM can not remain a global leader without making a serious investment towards expanding our presence in growth markets like India", Barra had told TOI in July 2015. The company has 150 dealers across India with 200 service outlets.

The company also says that it cares about its dealers and existing customers and will work closely with affected customers and dealers on a transition plan but a few dealers claim that its still going to be a big loss.

General Motors has confirmed that it will be ceasing its Indian sales operations by the end of this year.

Recently, the company consolidated its manufacturing activity at Talegaon assembly plant and ceased operations at its Halol factory located in Gujarat on April 28, 2017.

Sources said General Motors was in talks with Chinese firm SAIC Motor Corp to sell its Halol plant. It was discontinued in 1954. It started selling cars under the Opel brand, and later switched to the Chevrolet badge. In FY2017, the company exported 70,969 units, an 88 percent YoY growth. But GM isn't pulling out of all of its Indian operations entirely.


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