The manufacturer boasts the top three drivers in the current series standings: Yvan Muller, Rob Huff and Alain Menu.
Muller won the 2010 and 2011 titles for Chevrolet.
A team statement read: “Following a strategic review of Chevrolet’s motorsport and marketing programs, Chevrolet will leave the World Touring Car Championship at the end of the 2012 season.
“This announcement is being made mid-season to allow Chevrolet’s race drivers and race partner RML to plan for the future.
“The Chevrolet WTCC team currently leads both championships and is aiming to finish on a high by adding two more world titles to its achievements in the series.
“Chevrolet will continue to be present in global motorsports with its many other race series, including IndyCar and GT racing.”
Briton Huff was philosophical about the team’s withdrawal.
“It came as a shock, but we’ve had eight great years,” he told Eurosport.
“Everyone on Twitter is asking whether I’ll return to BTCC, saying it’d be great to have me back, but I don’t know. I can speak to everyone I know, but if someone doesn’t have a paid drive available, there’s nothing I can do.
“I need to get myself sorted for next year, but we’re halfway through a season and we’ve got a big job to do in order to make sure we go out on a high.
“And if there was ever a time for me to win the World Championship, it’s now. All three of us at Chevrolet will be striving for it more than ever now.
“Manufacturers come and go – hopefully RML, who are the reason I am there in the first place, can get something sorted for me for next season.”
The team have won two constructors’ championships, in 2010 and 2011, and have accumulated 59 race wins.