Chevrolet To Exit India And South Africa

The company also noted that it would continue to work with Peugeot, in France, which earlier this year acquired the Opel brand from GM, to evaluate "future opportunities for the Opel brand in South Africa".

But it doesn't plan to leave India entirely. The Halol plant will be sold to GM's Chinese joint venture partner, SAIC, after GM announced two years ago that it would shutter the plant.

General Motors (GM) has announced that it is "transforming" its business globally and, as a result, will be pulling out of South Africa.

The $5 billion GEM program, which GM is developed with Shanghai Automotive Industries on track to produce 2 million vehicles a year to sell in China, Latin America and Mexico.

Worldwide will streamline its regional headquarters office in Singapore, which will retain responsibility for strategic oversight of the remaining regional business and markets, including Australia and New Zealand, India, Korea and Southeast Asia. GM sold just 49,000 vehicles in India and South Africa combined past year. Meanwhile, there will be no impact on the manufacturing workforce at the Talegaon production facility. However, struggling to make a turnaround in India, the company put on hold the plan and undertook a full review of its future product portfolio here.

Stefan Jacoby, GM executive vice president and president of GM International, commenting on the decision, said, "We explored many options, but determined that the increased investment originally planned for India would not deliver the returns of other significant global opportunities". GM sales in South Africa past year totaled around 20,000 vehicles.

However, this decision comes as much less of a surprise upon learning that after twenty years in the market, Chevy holds less than one percent share of passenger auto sales in India. Customers, on the other hand, are now left with the big question as to what happens to Chevrolet's service network. "There was no consultation with the union, and furthermore, the company has not divulged any details about the fate of its employees affected by this restructuring", says Jim. But its market share fell to below 1 percent in the year ended March 31 from 1.17 percent the previous year - even as India's market grew 9 percent to climb above the 3 million vehicle level. Passenger cars and commercial vehicles are sold under the Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands.

GM India produced more than 83,000 cars in 2016-17 and most of these were exported. The Halol plant was GM's first plant in India which was set up in June 1996.