GM to Quit Selling Cars in India and South African Markets
General Motors Co.(GM), one of the biggest automakers in the word has decided to close its operations in India and South Africa. In a bid to restructure their international operations; and to focus capital and resources on markets on markets providing higher returns, GM has taken this step.
GM’s Chevrolet will be slowly phased out of the Indian and South African market by the end of the year 2017. The company, however, will not be shutting down its manufacturing in India though and will use it for exports, while GM South Africa will be transitioned into Isuzu Motors Ltd.
The Indian manufacturing facility will continue functioning as an export hub for Central America, South America and Mexico markets. The company has said that exports from India have tripled in the last year and will be a functional part of GM’s plans.
Before this decision, GM had struggled to maintain its presence in India because of dwindling sales in the last six years even though it peaked in 2011-12. With a market share of less than one percent, the company failed to run with profits in the two decades of operations in India.
In South Africa, GM’s light commercial vehicle manufacturing will be taken over by Isuzu Motors; while in the domestic market, GM will stop the manufacture and sales of Chevrolet.
Isuzu has agreed for purchasing General Motors’ 57.7 percent shareholding of the GM East Africa with proper management control.
The regional HQ office for General Motors would now be in Singapore, which will provide insight and retain the responsibility for strategic oversight of the remainder regional businesses and markets, including Southeast Asia, Korea, Australia and New Zealand, and India.