While car majors from all around the globe are eyeing India as a profitable investment due to its ever expanding customer base during urbanization, General Motors has taken its hands off the market. It shall disappear its sales in the following year. It stated that the decision has been made keeping its global presence in view, so as not to compromise on the international front.
Rather, the Chevrolet fame shall be exporting from India to other countries rather than selling in India, as per a not-so-good review conducted over a span of one year that started in June the last year.
Stefan Jacoby, GM executive vice president and president of GM International, said that they explored many options increasing investment in Indian market will not deliver the returns as much other significant global opportunities would. It would also not help the company to achieve a leadership position or compelling, long-term profitability in the domestic market. The decision is in lieu of global strategy and deliver appropriate returns for our shareholders, though it wasn't easy for the company that has a history of 97 years. It set its foot on Indian land with Chevrolet cars, trucks and buses until 1957. It took back and returned in 1994, and now pulls back once again.
The company lost its rank to Toyota in 2008 and has sold its Opel brand to PSA of France already. With the closing of Indian sales, its Halol plan might go to Chinese carmakers SAIC that are keen to enter India most likely in 2018. It has also done away with Australia, Indonesia and Brazil. The company wants to focus only on the places where it stands firm in terms of profit making and volume selling, America for instance, where it will send India manufactured Chevrolet Beat hatchback to Mexico and Central and South American market. the company shall be operational from Talegaon plant for the export business.
Still the company does not go all ignorant about its customers. It vows to provide all the services and warranties given to GM car holders. The move is not to draw back from the country completely, but to come back with a capital that it will build with a more disciplined and focused outlook towards sales in growth promising areas.
