Sources, however, said the decision would affect a minimum of 200 employees. In the second quarter, GM will take special charges of about $500 million for the actions.
GM's operations in other emerging markets have also been affected.
GM CEO Mary Barra said the company wants to focus on markets that will help its profitability and competitiveness. GM said its will stop selling its Chevrolet brand in both markets by the end of 2017.
GM is also pulling out entirely from South Africa, with plans to sell its relatively small manufacturing operation there to Isuzu Motors Ltd. The company still persisted with these products instead of developing cars for India. "GM India is working directly with our dealers to transition to authorised service outlets and to recognize some of the investments made in dealerships", the GM statement said.
Jacoby said the required investment to maintain manufacturing in South Africa could deliver better returns if invested elsewhere. General Motors Co. (NYSE: GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets.
Employees work on a Chevrolet Beat vehicle on an assembly line at the General Motors plant in Talegaon, about 118 km (73 miles) from Mumbai September 3, 2012. It operates an assembly plant in Maharashtra, where production volumes tripled to about 53,000 vehicles in 2016.
The company however did not give a timeline till when it will end it after sales service to customers.
As regards support to existing GM India and Chevrolet vehicle owners in India, Kazem said: "We will support our affected customers, employees, dealers and suppliers".
General Motors started off in India way back in 1996 with the Opel brand and cars that were well-engineered but ahead of their time for India. "Exports will remain our focus going forward as we continue to leverage India's strong supply base". Those vehicles built in Talagaon will be exclusively for export only to countries like Mexico and Central and South America, and the company will continue to work at its design and engineering center near Bangalore.
USA vehicle manufacturer General Motors (GM) on Thursday announced that it would disinvest from South Africa as part of a global restructuring process.
The company has been in discussions with SAIC Motor Corporation of China for selling the plant.
Kazim further said that customers need not worry about the parts of the GM cars that they have sold in India as the parts will still be available to customers long after it stops domestic sales in India.