US-based General Motors Co is likely stop selling its Chevrolet vehicles in India. But the world’s third largest carmaker will continue to manufacture and export cars from the country, two people privy to the matter told BloombergQuint on condition of anonymity.
The company is expected to make an official announcement on Thursday, stating it will shut down the Indian sales arm – Chevrolet Sales India Pvt Ltd.
The carmaker’s India head, Kaher Kazem, had visited the global headquarters to discuss the details, said the people quoted above. A team of senior officials from the US is currently in India, they said.
General Motors, which entered India in 1995, is yet to find a foothold in the country with less than 1 percent market share. The company sells three hatchbacks – the entry-level Spark, Beat, and the SAIL, which also has a sedan variant.
It also has two multi-utility vehicles, the Enjoy and the Tavera. The Cruze sedan and the Trailblazer sports utility vehicle are its premium brands. However, only the Tavera managed to make a mark as far as sales are concerned.
General Motors was expected to launch a refurbished version of the Beat hatchback in July, but realised that continued sales in India would only increase the company’s losses, said one of the persons mentioned above.
The automaker will, however, continue offering after-sales services and support to existing customers.
General Motors India told BloombergQuint:
We do not respond to speculation. As we have said on numerous occasions, we are currently evaluating our future product portfolio. Our product launches are progressing to plan and we continue to implement our consolidation of manufacturing at Talegaon.
(This story was first published on BloombergQuint)
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