General Motors (GM) has announced that it will stop making cars for the Indian market by the end of 2017.
The firm, which sells its Chevrolet brand in India, said it would continue to provide maintenance services.
It also said that its plant in Maharashtra would continue to make cars for overseas markets, mainly central and south American regions.
GM has announced similar plans for South and East African markets as part of its global business restructuring.
GM puts $1bn India plan 'on hold'
The US carmaker said it would stop selling cars in South Africa, and sell its manufacturing business there to Isuzu Motors.
It added that Isuzu would also purchase 57.7% shareholding in its East Africa operations, assuming management control.
The firm is aiming to make significant savings through these steps.
"As a result of these actions, GM expects to realise annual savings of approximately $100m (£77m) and plans to take a charge of approximately $500m in the second quarter of 2017," it said in a statement.
GM's announcement comes against the backdrop of predictions that India will become the world's third biggest vehicle market by 2020.
But the firm has put faith in exports from India.