[dZired]

General Motors is currently in a rut in the Indian market. The American automaker's Indian arm has recorded a loss of over Rs. 1,100 crore during 2015-16. Interestingly, the net worth of the Indian operations of General Motors is just Rs. 249 crore. As a result, the losses are over four times of the company's net worth in the country.

General Motors has been present in the Indian market for over two decades. However, the company, which was at one time the largest car maker in the world, hasn’t been able to offer the right set of products for the Indian customers. The lack of any new launches for the past two years (except the low-volume Trailblazer) has made matters worse for the manufacturer.

Chevrolet currently is on 10th position in the Indian market in terms of sales. It sold 3,020 units during the last month. The company has a meagre market share of 1.34%. Dominance of larger market players like Maruti and Hyundai, and new entrants like Renault in the budget segment has further negatively affected Chevrolet's market share in the country.

The company had earlier announced plans to invest $1bn in India and launch 10 new models by 2020. However, these plans were later put on hold owing to continuously falling sales numbers. As an attempt to revive its falling sales graph, Chevrolet is planning to launch the Beat facelift and the Essentia compact sedan in India this year.

Source: The Hindu

Link to Team-BHP News

[Nikhilb2008]

I wish I could just type "lol" and get away with it.

But this news really makes me chuckle. It's a shame that the world's largest auto maker is struggling so much in one of the world's fastest growing markets.

Unless they take drastic action soon, they will be completely eliminated from the Indian market.

This news item doesnt show how many GM dealers have shut down in India over the past few years.

I have been a beneficiary as Trident GM on Mysore Road closed down and became a Honda service centre!

At the end of it, it's a crying shame....

[libranof1987]

Wow, this is beyond terrible.

It is shameful that one of the world's largest automakers, and hence, someone with immense access to money and talent, is floundering in a rapidly growing market such as India.

They've done it before, coming in with Opel and then pulling out; they should have put up a better act in the round two.

What I think the reason could be: when you think Chevrolet, you typically think of the big, gas-guzzling SUVs, the Impala and a handful of hatches, including Volt.

None of these really are big markets in India so they have to start ground up in making a strategy. And looks like, they don't want to bother doing so.

[ksameer1234]

I really don't understand what stops GM from being successful. They have been around for a long time, have had some really desirable cars in their stable and people have been open to brands such as Opel and Chevrolet. If they are unable to sell reasonably good cars, GM might as well shut shop and accept their fate. GM India story has to be a shining case study on how to totally mess up from a strong position.

[Amit_breakfree]

It's a shame to see such an iconic and huge car maker in such shambles. I still remember, around 7-8 years back, GM was in a good enough position with cars like Beat, Optra, Cruze, Tavera, and even Aveo.

And then the company suddenly lost its direction. There have been no new launches, no fresh products, nothing which would say that the company is serious towards its operations in the country.

The company has had opportunities:
- Tavera could have picked up where Innova left, but it was left wanting due to outdated engines.
- Sail twins were already dead because of their uninspiring designs.
- Beat used to sell in respectable numbers, but there have been no major updates in last 6 years.
- After Optra and Optra Magnum, the company didn't launch any new product in the sedan segment.

Maybe if GM would have capitalized on these opportunities, they would have been at a very different place altogether.

Still, not all is lost, but a lot of water has flown beneath the bridge. However, if the company is serious about its Indian operation, it has to start afresh and not try to sell 10 years old products and rebadged Chinese replicas here.

Everyone will hate to see such an iconic car maker to be in such a situation.

[Zappo]

I think this happens due to multiple factors coming together. Typically when you are humongously big, have fingers in multiple pies, have no consistent focus and no clear vision and strategy plan documented or is done so in a much narrower spectrum you start seeing these problems. Even a comparatively noob Renault in the Indian market showed how it is done and that too in a highly competitive segment of the market. There is no reason in the world to stop GM doing even better but for the above.

Does GM ernestly believe that they have a major stake in the success of their operation in India? Is it believed right from the top and percolates down? I bet not. If it would have been so by now they would have started the remedial steps. They need a very senior person to oversee the India ops. That should be his focus area. Let the India head downwards everyone report back into him. Let the India team put up a coherent strategy for the next 5 years and with clearly defined milestones. Let them also put up a demand sheet. How much funding they need, what kind of resources etc. Let them design at least 2 products from grounds up that are focused on India. Let them also find out the issues in the marketplace (dealership, technicians, trust factor etc.) and fix them.

In short it will need a focused approach. At this point it looks to me like everyone at the India operation is downbeat and waiting for the axe to fall.

[iliketurtles]

It would seem that it really is a bit of chicken and the egg situation for GM. They don't want to invest in India with the dismal sales numbers they have, but the numbers won't pick up unless they invest substantially and expand their range of offerings.

Ford has brought in the Mustang as a halo car, what's stopping Chevrolet from bringing in the Camaro? Or any other cars that can breathe life into their lineup? The Cruze, for instance was launched in 2010 or 2011 and it has only received numerous nip and tuck jobs by way of facelifts with no sign of the new car making its way. The same could be said of any of their cars. GM can turn this around, but it needs to shake off the lethargy and invest in their cars and after-sales experience.

[SmartCat]

Originally Posted by Nikhilb2008

I wish I could just type "lol" and get away with it.

Revenues of Rs. 2,500 Crores and net loss of Rs. 1,000 crores makes me sad, since GM India is an automobile company.

But Revenues/Net Loss numbers of Snapdeal, Flipkart, PayTM and Amazon India makes me go LOL!

[landcruiser123]

Somehow, both American car makers are not dominating our market. Both Ford and GM have struggled in India. Ford hasn't struggled as much as GM.

So many factors at play. The lack of focus and new products killed the brand.
I have to say that the Optra, Aveo and Tavera were competitive products at some points. Where are the next gen products?

[aravind.anand]

GM India never could get the right products at the right time.

- Tavera was a good MPV, catering to the rural segment which couldn't afford the Innova; but GM chose to not pay attention to it, and added a Chinese Enjoy to its portfolio.

- Aveo was once competing with the City, Verna and Fiesta, they went ahead and bought a cheaper, smaller Chinese replacement in the form of Sail...

- Beat was very good when it was launched, but all its competitors have gone to the next gen now, and GM is planning a big face-lift only now!

- Cruze had killer power and looks, but that was almost a decade ago and the new gen Cruze hasn't even been spied in India yet.

- They have a small cross-over (Opel Trax) which they haven't considered for India yet.

They should stop thinking of India as a country which buys cheap cars. We buy value cars now. Going by how the Creta, Brezza, i20, Innova Crysta, Fortuner have all become blockbusters, it is pretty evident that the new-age Indians are ready to buy an expensive car, if you can convince him that the car is worth the money.

Please avoid any future plans with models from China, bring the new Cruze, get a crossover to fight the EcoSport and Brezza, and an SUV in the Creta's space, that should build some brand value and then some volumes too.

[motorworks]

I have said this before, At one point if you include the erstwhile spark, GM had cars in most segments under 10 lakhs and yet they failed. If you come to think of it, their Spark was the entry hatch, followed by the beat, then the UVA and then the Sail and finally the Tavera. Except Spark all other models have diesels and that too the national engine 1.3 MJD. In spite of all these, their numbers are at par with someone like a VW who probably sell the same amount of cars with just 2 models--Polo and the Vento and have at least established themselves as a premium automobile company, whether that's good or bad it's at least helped them position their brand in some way. GM on the other hand has no positioning in India. No USP in engines, or build quality or anything of that sort. It's very hard for them to gain anything significant from here. The only mass volume car they have potentially is the essentia which is already entering a very crowded CS segment where even Honda is not made any serious inroads in to the dominance of the Dzire and Excent. By the time they get their sub-4m compact SUV, that segment would be crowded as well and GM may again be lost for the lack of any serious USP.
Unlike Fiat which can try to make a comeback of sorts with Jeep, I think it's pretty much game over for GM in the next 2 years.

[PraNeel]

There are only 5 words for GM - "What else did you expect"?. Although others have given many reasons, the primary reason is outdated products.
All hopes on Beat facelift and Essentia. My advise to GM "Please don't bother". And this comes from a Beat owner.

Originally Posted by landcruiser123

Somehow, both American car makers are not dominating our market. Both Ford and GM have struggled in India. Ford hasn't struggled as much as GM.

Ford keeps on launching a NEW product (although only one) which becomes a hit, unlike GM.

Originally Posted by motorworks

I have said this before, At one point if you include the erstwhile spark, GM had cars in most segments under 10 lakhs and yet they failed.

GM was and is taking the Indian market as a third world market. They haven't (and won't) learnt anything from Ford, Hyundai, Renault.

[anjan_c2007]

They started with a bang launching the Opel Astra way back in 1996, costing around Rs 8 L - a princely sum then ! The diesel version of the Astra followed within a year or so and was priced at around Rs 10 L. The Opel Astra had built up GM's image, with its upmarket appeal and clientiele. The Opel Corsa/ Corsa Sail, that followed soon was a little popular but did nothing to keep up the upmarket image and appeal of brand GM, once created by the Astra. GM had deep pockets and hence could sustain all the market shocks. It still does !

They switched over and thought that culling brand Opel and introducing the brand Chevrolet will resurrect their fortunes. But with plasticky, small Chevrolets (Cruze and Optra were larger and exceptions. Tavera had become a taxi brand) that never sold too well.

I had created this thread sometime in 2008 :

http://www.team-bhp.com/forum/indian...cision-gm.html

The changeover from Opel to Chevrolet in 2006, to cash in on the old Chevrolet brand equity in India was followed by colourful supplements in Auto magazines, wherein we got to see famous Indian celebrities and even politicians with their old American Chevrolets. That was a nice addition to our libraries. But these gorgeous Chevrolets were from a different world.

Now GM was poised to market the plasticky and not so well designed ( and even a few ugly looking models) Chevrolets with Chinese and South Korean inputs. The brand Chevrolet in our mindset was the Great American Brand that had made cars like the Fleetmaster, Deluxe (Lata Mangeshkar's first car), Belair, Impala (once every Indian worth his salt dreamt of owning one), Chevelle, Malibu, Corvette, Camaro (from the "song sapna mera toot gaya" - Asha B and R D Burman in Khel Khel Mein fame), Caprice and so on.

With the newer Chevrolets from the Daewoo and its Chinese connections and so on, the car buyer is neither able to connect this brand with the Japanese or South Korean reliability or its American macho, flamboyant and gorgeous image.

Hence, the car buyer goes for either South Korean, Indian, Japanese or European brands. Where can the Chevrolet be slotted ? China, South Korea or even remotely the U.S. ?

Plus the marketing is not aggressive and many dealers are mostly laid back and are perhaps satisfied with whatever they sell.

GM will have to pump money to keep the brand afloat here. They also don't have any aggressive plans also to talk about.

[arvi86]

Screwing up once is bad. Screwing up twice in the span of one-and-half decades? Trust GM to do that.

I was furious at GM for choosing to bring the inexpensive and sober Sail twins to the Indian market when they also had the option of the stylish and capable Sonic twins. That was the moment when I seriously wished for them to be taught a lesson. Launch of the Enjoy was another stupid decision. I mean, what was GM thinking?

Where's the Beat's replacement? At a time when the whole world has the newer generation Spark/Beat, GM India is working on a facelift of the older generation for our market! Where's the Cruze's replacement? Isn't this car still selling modestly relative to it's segment? Aren't you supposed to keep your 'premium' customers happy?

You might argue Ford is in a similar position in India but they tried and are still trying. And GM? Well, the less I type, the better.

[amtak]

Originally Posted by arvi86

You might argue Ford is in a similar position in India but they tried and are still trying. And GM? Well, the less I type, the better.

Well, I would give it to Ford, they screwed up big time with Fiesta and cut their loses by killing the brand. If we say that Ecosport is their oldest product, it is also not more than 3 (or 4) year old product now. They have informed the world that the new version is on it's way.

Compare that with GM, no new cars that are exciting enough. I loved the looks of the Sail but sit inside, you can feel the quality of plastic parts and horrendous color combination. What about an AT variant? GM cars offer great ride quality but so does the competition. What exactly is your USP? If you don't pull up your socks and launch "ALL NEW" cars, in no time General Motors will be Retd. General Motors.

Bring in the Traxx, Bring in the Sonic Twins, New Cruze, a few more MPV's from your American stable and not SAIC.