Confirmed! Chevrolet to cease Indian sales by the end of 2017

General Motors has confirmed that it will be ceasing its Indian sales operations by the end of this year. This marks the end of road for the Chevrolet brand in the country. The company claims that it has been reviewing its future plans from June 2016, post which the decision to cease domestic retail was made.

While Chevrolet cars will no longer be sold in India, General Motors will continue to manufacture cars at its Talegaon production facility, which will then be exported to Mexico and other Central & South American markets. The new Beat is currently being exported to the said countries, while the Beat sedan (Essentia) too is expected to be launched in these markets by the end of this year.

The decision to quit the Indian market comes as a result of continuously falling sales figures and rising operational losses. For the fiscal year 2015-16, operating losses of General Motors' Indian arm were four times its net worth. The American carmaker currently has a market share of just 0.32%. GM India also accepted that it reviewed its future product strategy for the Indian market and deduced that it will be difficult to achieve long term profitability from sales in India. Thus, the decision to call off its Indian retail operations is part of General Motors' attempts to protect shareholder interest and strengthen its international arm.

Chevrolet has claimed that the existing owners will be provided with all warranty benefits and after sales support. It is currently talking with dealerships to come out with a plan to provide service support throughout the country. The company's customer support centre will continue to remain open and will be responsible for taking care of spare parts requirement. The GM Technical Centre-India (GMTC-I) in Bangalore will also remain operational and perform global work for international product development.

GM India has informed its employees about its decision to exit India. The company claims that around 400 employees will be directly affected by this decision, which is 8% of the total workforce. These employees are linked to the company's local sales division. Meanwhile, there will be no impact on the manufacturing workforce at the Talegaon production facility. GM claims that it is offering a long transition period to affected employees along with some separation programs as well.

Kaher Kazem, the president and Managing Director of GM India, has also announced that there are no plans to introduce any other brand from the GM family in the Indian market in the foreseeable future.