World’s third largest carmaker, General Motors will stop selling Chevrolet cars in India by the end of this year. Its local arm Chevrolet opened to a good start with entry level mini hatch Spark and Beat further fuelled up sales with its frugal diesel version, albeit sales started declining with the onset of new segments and launch of new models, incurring heavy losses to the company. Meanwhile, GM will utilize its Talegaon manufacturing unit in Maharashtra for exports. Also, GM’s Technical Centre-India (GMTC-I) in Bengaluru will not be impacted by the decision.
The company officially revealed its plans early today, the decision came after the team of top officials from the US recently flew to India following GM India’s head, Kaher Kazem’s visit to the global headquarters. While GM’s sudden move has come across as a shocker to the Indian automotive fraternity, here’s a look at implications, reasons and other vital aspects on Chevrolet’s exit.
What will happen to existing Chevrolet Customers – Video
Reasons behind the shutdown of sales
As a part of its strategy to enhance global operations, the company initiated a review in June 2016. The comprehensive review indicated at rise in exports business from India, which according to data, tripled in the last one year. The steep losses incurred due to drop in sales have been mounting up, which seemed to further deepen even if it rolled-out new products in the market. The company set foot in India in 1995 and currently accounts for just 1% market share.
Will continue providing after-sales support to customers
The closure of sales will not affect Chevrolet’s existing customers as the company will continue providing after-sales service through its existing channels. Even the warranties offered on vehicles will continue and the spare-parts for its vehicles will be also be provided. For further queries, existing Chevrolet customers can dial 1-800-3000-8080 or email at gmi.cac@gm.com or visit Chevrolet’s India website, chevrolet.co.in.
Chevy Beat launch plan cancelled
The news of Chevrolet shutting shop (in terms of sales) in India comes at a time when the firm was gearing up for the new Beat launch in July this year. The model was revealed last year at the 2016 Auto Expo alongside Chevrolet Essentia and Chevrolet Beat Cross. GM currently retails Spark, Beat, SAIL twins, Cruze, Enjoy, Cruze, Trailblazer and Tavera under its Indian arm.
What will happen to employees, dealers and suppliers
While the company informed its employees about the decisions, it is working closely with the employees, their union representatives and local authorities in a bid to aide transition support. GM India also assured to extend its support to the dealers and suppliers.
