It's official. The US auto major General Motors made an announcement on Thursday, May 18 marking the retirement of Chevrolet in India.
Chevrolet, the only brand from GM sold in India will exit the market by end of this year. However, GM's Talegaon plant will remain operational for export purposes only. The company's Technical Centre-India (GMTC-I) in Bengaluru will not be impacted by the latest announcement and will continue to work for GM global. Last month, General Motors pulled the plug on its Halol plant in Gujarat to focus and consolidate operations at the Talegaon plant in Pune.
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."
The announcement is consistent with GM's allocation of capital and investment around the world with an aim to generate stronger returns and drive the shareholder value. General Motors said the latest decision is part of a series of actions taken by the company to address its performance worldwide.
"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," said Kaher Kazem, GM India president and managing director.
GM said it will work closely with affected customers and dealers. The customer support centres will remain open as well, the company added.
GM had in 2006 withdrew the Opel brand from India and replaced it with Chevrolet.