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GM India to cease domestic sales, focus only on exports

IANS  |  New Delhi 

Automobile manufacturer on Thursday said it will cease domestic sales by the end of 2017 and thereafter only focus on exporting its products from

According to the company, it will cease domestic sales on December 31, 2017. It will, however, continue to manufacture vehicles at its Talegaon plant, in Maharashtra, which will be exported.

The automobile manufacturer said the decision to cease domestic sales follows a comprehensive review of future product plans for GM India, and is part of a series of actions taken by the company to address the performance of its worldwide operations.

"We explored many options, but determined the increased investment originally planned for would not deliver the returns of other significant global opportunities," said Stefan Jacoby, GM's Executive Vice President and President of GM International.

"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."

The company said its customer support centre 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 added that GM Technical Centre-(GMTC-I) in Bengaluru will not be impacted by this announcement.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 18 2017. 16:10 IST
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