General Motors India, the sellers of Chevrolet cars in the country, has decided to cease sales in the Indian market by the end of 2017 and focus only on export manufacturing operations.

The GM Technical Centre-India (GMTC-I), which is located in Bengaluru, and performs global work for GM will not be impacted by this announcement, the company said.The decision, which follows a comprehensive review of future product plans for GM India, is part of a series of actions taken by General Motors to address the performance of its operations worldwide.

Through the review, which began in June 2016, the company determined its greatest opportunity in India to drive shareholder return rests on focusing on exports from India, GM India said.The company will work closely with affected customers and dealers on a transition plan. The customer support center will remain open and all warranties and service agreements, as well as ongoing service and parts requirements for all vehicles, will continue to be honoured. The company's customers can call 1-800-3000-8080, email at gmi.cac@gm.com or visit chevrolet.co.in, GM India said.

"We explored many options, but determined the increased investment originally planned for India would not deliver the returns of other significant global opportunities. It would also not help us achieve a leadership position or compelling, long-term profitability in the domestic market. Difficult as it has been to reach this decision, it is the right outcome to support our global strategy and deliver appropriate returns for our shareholders," GM International executive vice president and president Stefan Jacoby said.

Our decision in India is an important milestone in strengthening the performance of our GM International operations and establishing GM as a more focused and disciplined company, Jacoby added. As GM moved to consolidate Indian manufacturing at its Talegaon assembly plant, the company ceased manufacturing at its Halol assembly plant on April 28, 2017.

Negotiations continue on the asset sale at Halol. GM India president and managing director Kaher Kazem believes that the focus for the GM India manufacturing base at Talegaon will be export markets, upcoming export vehicle launches and exploring longer-term strategic options." GM India's export business has tripled over the past year. Exports will remain our focus going forward as we continue to leverage India’s strong supply base. We recently launched the new Chevrolet Beat hatchback for export to Mexico and Central and South American markets and will launch the Chevrolet Beat sedan later this year for those markets," Kazem said. We will support our affected customers, employees, dealers and suppliers. Chevrolet owners can be assured that we will continue to honor all warranties and provide comprehensive aftersales support, Kazem added.

GM India to stop selling cars in the country in 2017