Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 4th May 2015, 13:06   #1
BHPian
 
darklord's Avatar
 
Join Date: Oct 2007
Location: TVM (KL-16)
Posts: 471
Thanked: 796 Times
Default General Motors set to storm India as Korean costs climb

Quote:
(Reuters) - General Motors (GM.N) aims to grab at least 5 percent market share in India within the next decade, as it sees that market overtaking Japan as the world's third biggest with projected annual sales of 8 million vehicles by 2025.

The Detroit carmaker, which is losing money in India even after 18 years there, will unleash a product blitz aimed at reviving sagging sales, and will make India a new global manufacturing and export hub, taking some of the strain off South Korea, where labor costs have ballooned in recent years.
http://www.reuters.com/article/2015/...0NO0TW20150503
darklord is offline   (3) Thanks Reply With Quote
Old 4th May 2015, 13:50   #2
BHPian
 
charanreddy's Avatar
 
Join Date: Nov 2013
Location: Bangalore
Posts: 143
Thanked: 138 Times
Default re: General Motors set to storm India as Korean costs climb

Will GM learn this time around? Launching tons of new products won't help if there is no marketing / service to back it up.. I own a Beat.. After two and half years and 32 K on the odo, I can vouch its a good product at the price point. But I am skeptical / worried that the after sales will rip me off. and there are only two dealers in Bangalore with Kropex having very negative feedback and Trident going the same way.

To increase presence, GM has to increase the 'trust' factor and consistency in service. The emissions fudging controversy didn't help either.
charanreddy is offline   (9) Thanks Reply With Quote
Old 4th May 2015, 14:54   #3
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,743
Thanked: 89,334 Times
Default Re: General Motors set to storm India as Korean costs climb

Quote:
General Motors (GM.N) aims to grab at least 5 percent market share in India within the next decade
I just love how these dimwits set ridiculous targets on their powerpoint presentations. Seriously, what have they been smoking?

After spending 20 years in India, General Motors closed March 2015 with a measly 1.6% market-share. They've had a first mover advantage - arriving earlier than other MNCs - and enjoyed a market with lesser competition. Today, the competitive scenario is brutal.

What exactly does the General plan to do to increase its share? New products? Good, but what's really needed is an overhaul of its brand, marketing, sales push, dealers etc.

5% market-share means tripling its sales. Currently, every Chevrolet product is a laggard in its segment. The Tavera is their only car with sales in the 4 digits, but only just.

Don't get me wrong. I'd love it if General Motors became more powerful in India, as stronger competition only makes things better for me, the customer. But based on their 20 year history, I have little hope. This company is as slow moving & lazy as they come.
GTO is offline   (20) Thanks Reply With Quote
Old 4th May 2015, 16:27   #4
BHPian
 
nakul0888's Avatar
 
Join Date: Apr 2013
Location: kochi
Posts: 353
Thanked: 815 Times
Default

Would be great if they brought in Cadillac to India. They are making great drivers cars now, as good as any bmw but more vfm and better reliability ratings. If only they had a 3.0 & a 2.0 diesel lying around somewhere, they can easily take up a sizeable market share from the Germans with reasonable non rip-offish pricing.
I 'll have a petrol with a stick please.
nakul0888 is offline   (3) Thanks Reply With Quote
Old 9th May 2015, 09:45   #5
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,743
Thanked: 89,334 Times
Default Re: General Motors set to storm India as Korean costs climb

I think GM India has no attention from headquarters due to a very simple fact = Our neighbour China!

GM sold over 2.5 lakh cars in China last month. That's BIGGER than the entire Indian market - related link.

Considering how sloppy their Indian management has been, and the innumerable goof-ups made, Mary Barra (GM CEO) would have doubts on investing heavily in India. At the end of the day, if you have $50 million to invest, would you do it in a market where you sell 2.5 lakhs a month or 5,000 a month? GM China is 50 times bigger than GM India.
GTO is offline   (12) Thanks Reply With Quote
Old 9th May 2015, 11:12   #6
Team-BHP Support
 
bblost's Avatar
 
Join Date: Jul 2007
Location: Hyderabad
Posts: 9,650
Thanked: 6,663 Times
Default Re: General Motors set to storm India as Korean costs climb

To add to it: http://www.team-bhp.com/forum/indian...ml#post3141907 (May 2013 : Indian Car Sales Figures & Analysis)

The number two car is my super sweet Chevrolet Sail.

Car barely sells in India. But wins in China big time. Honestly am not all surprised. The car is perfect for my needs and with almost 28,000 kms done, I have nothing but the best feelings for GM to succeed in India.
bblost is offline   (5) Thanks Reply With Quote
Old 9th May 2015, 11:35   #7
BHPian
 
saurabhdadhichi's Avatar
 
Join Date: Jul 2009
Location: New Delhi
Posts: 213
Thanked: 68 Times
Default

Quote:
Originally Posted by GTO View Post
I just love how these dimwits set ridiculous targets on their powerpoint presentations. Seriously, what have they been smoking?



After spending 20 years in India, General Motors closed March 2015 with a measly 1.6% market-share. Don't get me wrong. I'd love it if General Motors became more powerful in India, as stronger competition only makes things better for me, the customer. But based on their 20 year history, I have little hope. This company is as slow moving & lazy as they come.

True GTO, it's mainly got to do with Indian GM management, pretty lethargic and also are not capable of getting attention of their Big Bosses. Yes it always boils down to which investment will give biggest returns and they clearly have this coming from China Markets where they are pretty strong.

I believe the target they have set seems to be impossible unless they have a clear onslaught planned with their latest generation products with their cost being competitive. They should learn from the companies around them and Don't do anything stupid. 😆
saurabhdadhichi is offline   Reply With Quote
Old 9th May 2015, 11:47   #8
BHPian
 
SchumiFan's Avatar
 
Join Date: Jan 2010
Location: Bangalore
Posts: 859
Thanked: 703 Times
Default Re: General Motors set to storm India as Korean costs climb

GM should stop using India to try its Chinese/Korean makes. If they want to gain share in the market, they need to understand what the customer needs. The Sail twins however good they maybe doesn't exactly offer an USP for it to be sold. They look very bland from outside.

I think they need to get the Sonic twins in ASAP. And they need a turbo petrol engine as well. The 1.3 MJD's best implementation is from Maruti and GM cannot make customers buy their cars just by fitting the same engine to it.

They lack a positive differentiator and they need it quick. They could differentiate themselves by offering more safety kits to their existing line up. Beat comes with 10 airbags in USA. Considering all the negative hype around the market leaders (Maruti/Hyundai), they should have acted quick and boasted about it like VW did with their Polo.

At the same time, it might be a good idea to drive a Camaro around just to let people know that you are in town and capable of these things as well. Chevy in India just doesn't have any sort of pull over the potential buyers right now.
SchumiFan is offline   (1) Thanks Reply With Quote
Old 9th May 2015, 11:47   #9
Senior - BHPian
 
Join Date: Dec 2006
Location: NH209
Posts: 1,607
Thanked: 701 Times
Default Re: General Motors set to storm India as Korean costs climb

Quote:
Originally Posted by GTO View Post
The Tavera is their only car with sales in the 4 digits, but only just.
It is lapped up consistently in the T-board market as they can get spares outside the authorized service centers.

Enjoy doesn't give the owners such privileges. A T-board driver gave me his peace of mind about the quality and service of it. "only positive is kmpl''.
ramzsys is offline   (1) Thanks Reply With Quote
Old 9th May 2015, 12:10   #10
Distinguished - BHPian
 
Sheel's Avatar
 
Join Date: Jul 2006
Location: Purnea(Bihar)
Posts: 5,206
Thanked: 4,828 Times
Default Re: General Motors set to storm India as Korean costs climb

You buy a car once, but go to an ASC countless no of times. Is it so hard to understand that if you have a good ASC, your customer base will be satisfied. You will have return consumers + the real world feedback will bring more consumers.

Look at Maruti & Toyota. Half of their sucess story is because of their check on ASC/parts supply and other factors related to service.
Sheel is offline   (2) Thanks Reply With Quote
Old 9th May 2015, 18:04   #11
RSR
Distinguished - BHPian
 
RSR's Avatar
 
Join Date: Nov 2011
Location: Chennai
Posts: 1,621
Thanked: 4,538 Times
Default Re: General Motors set to storm India as Korean costs climb

Quote:
Originally Posted by SchumiFan View Post
GM should stop using India to try its Chinese/Korean makes.
Quote:
Originally Posted by SchumiFan View Post
I think they need to get the Sonic twins in ASAP.
I'm sorry to say this, but that second statement of yours directly contradicts your first one.

The Sonic twins succeeded the Aveo twins globally, and they were primarily developed by GM Korea (with inputs from other regional GM divisions). GM Korea was earlier known as GMDAT (General Motors Daewoo Automobile Technologies), which in turn is nothing but Daewoo of South Korea which was bought by GM.

The Sonic twins are very much South Korean in origin, but meant to be sold across the globe by the various regional divisions of GM.

Quote:
The first all-new Chevy Aveo has rolled off the mass-production line at GM Korea’s Bupyeong plant in Incheon, South Korea. The new Aveo — to be called Sonic in the United States — will go on sale in Korea in March and will continue its global roll-out in the following months.

The production of the Aveo at Bupyeong brings the plant’s operations to full capacity, joining other GM Korea plants operating at full capacity in Gunsan and Changwon. Based on GM’s global Gamma II architecture — the Aveo/Sonic was developed by GM Korea and follows the Chevy Cruze as GM’s second truly global vehicle (save for the name).
Read more: http://gmauthority.com/blog/2011/02/...#ixzz3ZdxnfNRN

Quote:
Originally Posted by SchumiFan View Post
The 1.3 MJD's best implementation is from Maruti and GM cannot make customers buy their cars just by fitting the same engine to it.
This is debatable at best. GM's state of tune of the MJD scores much better on drivability and concealment of turbo lag.

When pitted head-to-head, the Maruti Suzukis would be quicker than the Chevys with the same engine in the 0-100 kmph dash, and also have better FE, because they happen to be lighter.

GM uses the MJD in their cars because they happened to co-develop the engine (along with Fiat, and they don't even have to pay royalty to anyone), and because that engine is ideally suited for India - and not because Maruti Suzuki is using it, and they wanted to pull in customers by using the same engine.

Last edited by RSR : 9th May 2015 at 18:16.
RSR is offline   (2) Thanks Reply With Quote
Old 9th May 2015, 23:59   #12
BHPian
 
SchumiFan's Avatar
 
Join Date: Jan 2010
Location: Bangalore
Posts: 859
Thanked: 703 Times
Default Re: General Motors set to storm India as Korean costs climb

Quote:
Originally Posted by RSR View Post
I'm sorry to say this, but that second statement of yours directly contradicts your first one.

The Sonic twins succeeded the Aveo twins globally, and they were primarily developed by GM Korea (with inputs from other regional GM divisions). GM Korea was earlier known as GMDAT (General Motors Daewoo Automobile Technologies), which in turn is nothing but Daewoo of South Korea which was bought by GM.

The Sonic twins are very much South Korean in origin, but meant to be sold across the globe by the various regional divisions of GM.

Read more: http://gmauthority.com/blog/2011/02/...#ixzz3ZdxnfNRN

This is debatable at best. GM's state of tune of the MJD scores much better on drivability and concealment of turbo lag.
When pitted head-to-head, the Maruti Suzukis would be quicker than the Chevys with the same engine in the 0-100 kmph dash, and also have better FE, because they happen to be lighter.

GM uses the MJD in their cars because they happened to co-develop the engine (along with Fiat, and they don't even have to pay royalty to anyone), and because that engine is ideally suited for India - and not because Maruti Suzuki is using it, and they wanted to pull in customers by using the same engine.
My bad about the Sonic twins. I saw them launched in the USA and didn't know they were developed in Korea. My point was based on 'Enjoy' launch, a Wuling product.

GM may have well developed the engine but see Fiat who are not able to do anything good with it even though they have had it for ages. It is what I mean by wanting to pull customers using the same engine.

Their cars don't have a USP like some of the others do and in this market they need a differentiator to make the customers move from their comfort spot.Fiat have the ride/handling card but haven't been able to sell cars in numbers.

VW for their part brought in the DSG+Turbo Petrol combo and have seen some success with it. Likewise GM need something new and fresh to make people notice their products and to maybe succeed.

Last edited by SchumiFan : 10th May 2015 at 00:01.
SchumiFan is offline   Reply With Quote
Old 10th May 2015, 08:16   #13
BHPian
 
Join Date: Nov 2007
Location: Bangalore
Posts: 717
Thanked: 726 Times
Default Re: General Motors set to storm India as Korean costs climb

Meanwhile at GM India Annual Strategy Planning session at a 5 star resort in a far away exotic country

"the top brass says we need to triple our sales! How do we do it?"

Open PowerPoint

MD - "1. Let's keep quiet. No one will notice this. "

Head of Sales - "2. Let's bring in the Camaro. Seeing that car, everyone will be inspired to buy the Sail!"

Voice of reason - "3. Maybe we should improve our brand and.. "

MD and Head of Sales - "Shut up Voice of Reason. You have no idea what you're talking about."

<internal discussion>

"We've arrived at our winning strategy. We shall import a few Camaros at exorbitant prices and then accuse the Indian buyer with cheap mentality and brutal local crony loyalism towards Maruti and not buying our ageing fleet of cars. That should help us stay afloat for another few years. All in favor, say aye"

"Aye! Aye! Aye! Aye! Aye! Aye! Aye!..."

I am sure that's how the primates that manage this company here are doing their planning. Never seen a company with so much potential screw up so completely badly.

This from a previous highly satisfied Spark owner.
Mad Max is offline   (5) Thanks Reply With Quote
Old 11th May 2015, 11:58   #14
Distinguished - BHPian
 
smartcat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 2,973
Thanked: 11,921 Times
Default Re: General Motors set to storm India as Korean costs climb

Honda was almost written off but they came back with a bang. With the right products and right strategy, GM bouncing back too is a possibility.

However, I don't understand the "targets" funda of these business guys. I don't think any business should have "targets". What will you do after you reach your target? Not work at all? Go off on a sabbatical?
smartcat is offline   (1) Thanks Reply With Quote
Old 11th May 2015, 12:24   #15
BHPian
 
Join Date: Feb 2012
Location: New York City
Posts: 110
Thanked: 238 Times
Default Re: General Motors set to storm India as Korean costs climb

Quote:
Originally Posted by GTO View Post
I just love how these dimwits set ridiculous targets on their powerpoint presentations. Seriously, what have they been smoking?
Quote:
Originally Posted by SchumiFan View Post
GM should stop using India to try its Chinese/Korean makes. If they want to gain share in the market, they need to understand what the customer needs. The Sail twins however good they maybe doesn't exactly offer an USP for it to be sold. They look very bland from outside.

I think they need to get the Sonic twins in ASAP. And they need a turbo petrol engine as well.

They lack a positive differentiator and they need it quick. They could differentiate themselves by offering more safety kits to their existing line up. .
Schumi Fan, you are bang on.

The only products that have succeeded in India versus Maruti are those with a differentiator. That word means so much.

The Innova? Different from all 7 seaters at the time = spacious, reliable, stable at speed.

The i20? Quality interiors, feature heavy, styling heavy.

The Duster? One and only option at the time.

I have quoted GTO to simply ask GM what they are smoking indeed! For India, they need their European product line. India is not China. We have a different market with different needs. For me, a stylish, well built, turbo petrol and turbo diesel hatch would certainly make itself known.

I use the example of the VW Polo now. Even with the stories of terrible service and a relatively high purchase price versus competition, it manages over 2k sales a month because of differentiation. TSI, DSG, GT TDI and super build quality are all different from the average hatch.

Perhaps they should revive the Opel brand. It had tremendous value in India and is definitely more positive than Chevrolet. How about stuff like the new Opel lineup? Surely would be better than Chinese-Korean hatches that make no impression whatsoever.
carmayogi is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
General Motors with Chinese companies to launch Nano rival car in India WDM007 The International Automotive Scene 2 29th January 2013 12:17
The storm is here.... (Purchased a San Storm!) lover_guy_001 Test-Drives & Initial Ownership Reports 50 3rd May 2011 00:11
General Motors, Reva to Collaborate on Electric Car for India Based on Chevy Spark vikrantj The Indian Car Scene 3 25th September 2009 11:17
General Motors / Ford bailout proposal failed in US Senate- will it impact India? ritz830 The Indian Car Scene 26 3rd June 2009 10:04
General Motors opens first design studio in India scorp 1 The Indian Car Scene 9 6th December 2007 19:22


All times are GMT +5.5. The time now is 13:15.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks