General Motors to stop selling cars in India

General Motors said on Thursday it will stop selling cars in India's highly competitive market this year and use its manufacturing facility in the country for exports.

The move is part of the US automaker's restructuring of its international business to focus on the markets with higher returns.

Stefan Jacoby, GM's executive vice president and president of GM International, said that the company has seen its exports from India tripled over the past year "and this will remain our focus going forward."

GM said its manufacturing facility at Talegaon in the western state of Maharashtra will continue as an export hub for Mexico and Central and South American markets. The plant has a capacity of 170,000 units per year and employs more than 2,500 workers.

The automaker will stop sales of Chevrolet vehicles in the domestic market by the end of 2017.

"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," Jacoby said.

GM has struggled in the Indian car market, which is dominated by local and Asian carmakers and saw passenger car sales of 2.1 million in the 2016-17 financial year.

The company had earlier put on hold its ambitious investment plans to roll out India-produced models for the local market.

Last month it shut its facility at Halol in Gujarat, where it produced Opel and Chevrolet cars. The plant had an annual capacity of 110,000 units.

GM India produced more than 83,000 cars in 2016-17 and most of these were exported. -- Bernama