General Motors (GM) is pulling out of the Indian car market – at least its sales wing – as the company has decided to shutters its sales operations in India owing to lackluster performance.
The American automaker said that it will stop selling its cars in India, it would continue the manufacturing and export from India. GM decided to shutter its sales operations after sales of its cars decreased by 21 per cent in the financial year 2016-17. The Indian division of the company could only manage to sell 25,823 units of its vehicle last year.
According to the company officials, this decision is taken foreseeing the long term benefit of GM vehicles in the Indian market. GM India had plans to invest marginally in the domestic market but that would have lowered the impact that company envisaged globally.
GM India however would continue its manufacturing unit in Talegoanon, Maharashtra. The company has already shuttered one of its two plants in Halol, Gujarat. Despite the steep decrease in sales, company has continued to increase its vehicle production which saw an increase of 16 per cent, producing 83,368 units which is exported.
With this decision, company failed its promise which it made of investing 1 billion US dollars in India to set up 10 manufacturing facilities. India is not the only country where GM has decided the close the sales operations. Three markets other than India, which include Russia and Europe will also see GM’s exit.