Chevrolet to pull out of India, South Africa

Chevrolet to pull out of India, South Africa

Chevrolet to pull out of India, South Africa

GM also has said it is investing about $600 million a year in efforts to develop autonomous vehicles and transportation services.

General Motors is beating a retreat from one of the world's hottest auto markets. GM re-entered the Indian market in 1995 after it left the country in 1958. It has centered most of its emerging-markets investment on China and Brazil.

In a separate move, GM plans to stop building Chevrolet vehicles in South Africa and sell its South African factory to Japan's Isuzu Motors Ltd, along with the 30 percent stake the USA automaker owns in a truck venture with Isuzu Motors. In 2009, GM turned its Indian operation into a 50-50 venture with its main partner in China, Shanghai Automotive Industry Corporation (SAIC).

"Our decision in India is an important milestone in strengthening the performance of our GM International operations and establishing GM as a more focused and disciplined company", Financial Express quoted Tefan Jacoby, GM executive vice president and president of GM International. Companies that entered later in India were understanding the consumer much better and quicker but GM somehow developed the knack to not acknowledge the obvious! The sales, service and warranties for all the GM products in India will be honored as per the schedule.

Kaher Kazem, President and Managing Director of General Motors India, said, " General Motors India's export business has tripled over the past year.

"What are we spending our time doing?" Isuzu will also purchase GM's vehicle conversion and distribution centre and assume control of the parts distribution centre.

GM has been working to shore up losses in many countries included in its global operations division. Where does this leave owners of Chevrolet cars in India especially with their car's servicing, after sales service, and other issues?

GM said the actions will mean annual savings of around $100m (£77.1m) and plans to take a charge of around $500m in the second quarter of this year to rejig operations across India, Africa and Singapore. "As a trade union we are surprised that GM chose to convey this announcement in this way", said Jim.

GM says it would no longer market its Chevrolet brand - its only brand of cars marketed in India - despite India's promise as a market set to overtake Japan as the world's third largest in the next decade. This project will help design, develop and market low-priced cars for the Indian and other relative markets. Presently the company sells the Tavera, Cruze, Enjoy, Beat, Sail twins and the Trailblazer SUV in India. Competitors brought out smarter cars with more features at lucrative prices and as expected, they sold.