General Motors has announced it will stop selling vehicles in the India from the end of the year, as it focuses investment on future technology.
The US car giant has had a presence in what is one of the world's most competitive markets for two decades but it has not amassed one per cent of passenger car sales there. GM said its exports in India have tripled over the past year so that will remain its focus.
It plans to turn one of its two factories in India into an export-only plant and will sell the other to Chinese joint venture partner SAIC, as it stops selling its Chevrolet vehicles by the end of 2017.
The giant has said it is investing around $600m a year as it ramps up efforts to develop driverless vehicles.
The announcement was made amid a series of restructuring moves GM has unveiled today, following a review of operations in its international markets. The firm said the moves will enable it to focus its capital and resources on "business opportunities expected to deliver higher returns".
It will also sell its commercial vehicle manufacturing business in South Africa to Isuzu Motor and sales of Chevrolet cars will also come to an end this year.
“As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company,” said GM chairman and chief executive Mary Barra. “We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility."
“Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalise on growth opportunities for the long term," she added.
GM said the actions will mean annual savings of around $100m (£77.1m) and plans to take a charge of around $500m in the second quarter of this year to rejig operations across India, Africa and Singapore.
In March, it was announced that GM is selling its European unit, including Vauxhall, to French firm PSA in a €2.2bn deal.