19:59 GMT09 August 2020
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    US car manufacturer General Motors (GM) has announced that it will close its car sale business in India and use its Indian car manufacturing plant only for export needs.

    New Delhi (Sputnik) — General Motors said the move was prompted by last year's 21 percent drop in sales when the company sold 25,823 vehicles.

    GM's decision must come as a surprise to other carmakers such as Ford and Renault, which have been expanding their business in India. "GM will cease sales of Chevrolet vehicles in the domestic market by the end of 2017. Existing Chevrolet customers will continue to be supported in the market," the company said in a statement on Thursday. GM's manufacturing facility at Talegaon will continue as an export hub for Mexico and Central and South American markets. GM exported 70,969 units from its Talegaon plant last year, thrice its sales in India.

    "In India, our exports have tripled over the past year, and this will remain our focus going forward. We determined that the increased investment required for an extensive and flexible product portfolio would not deliver a leadership position or long-term profitability in the domestic market," Stefan Jacoby, GM Executive Vice President and President, GM International, said. GM made this decision soon after the sale in March of GM's European brands to PSA Group.

    Last month, GM shut down its manufacturing plant in western India after failing to find a buyer for the Halol-based 20-year-old plant. GM re-entered the Indian market in 1995 after it left the country in 1958. It had been selling Chevrolets since 1918 and even opened a factory near Bombay in 1928.

    After nearly two decades, GM's Indian business is yet to make a profit while in China it delivered 272,770 vehicles in April alone — more than ten times in comparison to India. GM has 10 joint ventures, two wholly-owned foreign enterprises and more than 58,000 employees in China. Passenger cars and commercial vehicles are sold under the Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands. In 2016, GM delivered more than 3.8 million vehicles in China.




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