GM India announced today that it will stop selling cars in India and the Chevrolet brand will be phased out of the market by the end of this year.
The decision was announced as part of a series of restructuring actions from the Detroit automaker on Thursday, and marks a significant blow to India's strategy of encouraging domestic manufacturing.
India is not the only market in which the American auto giant is consolidating its operations. The company also announced transitioning its East and South Africa operations to Isuzu Motors and phasing out the Chevrolet brand in those markets too.
It plans to keep operating its tech center in Bangalore and to refocus its India manufacturing operations by making one of its two assembly plants in India - the one at Talegaon, about 100 km (62 miles) southeast of Mumbai - into an export-only factory.
The company has assured customers that any maintenance-related work, including spare part sourcing will not be an issue. Spare parts will be available across the country through the brand’s 150 dealer network.
The shutdown includes upcoming cars like the new Beat and Beat Essentia as well. Neither one of these cars, nor the new Cruze will come to India. In short, no new Chevrolet model will be launched in India from now on - locally made or imported.