American auto major General Motors today decided to stop selling its vehicles in India as there was no turnaround in its fortunes here after struggling for over two decades to make a mark.The company will now focus on exporting vehicles from its manufacturing plant at Talegoaon in Maharashtra after it stopped production at its first plant at Halol in Gujarat last month. The decision follows a comprehensive review of future product plans for GM India and is part of a series of actions taken by General Motors to address the performance of its operations worldwide, the company said in a statement. It has also exited from four other international markets, including Russia and Europe.GM Executive Vice President and President of GM International Stefan Jacoby said that after exploring many options the company determined that 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,” he added.GM sales in India were down nearly 21 per cent in 2016-17 to 25,823 units. Its production however grew about 16 per cent to 83,368 units most of which were exported.
The company informed employees of General Motors India about the decision. It, however, did not disclose how many of the would be affected by the development. Sources, however, said the decision would affect a minimum of 200 employees.
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