Chevrolet sold a grand total of 11330 cars in March 2010 and a total of 110804 for whole year 2010. Too good to be true.
2009-10 would have been the time Chevrolet was on full throttle. Strong Marketing Campaigns, New Product launches, Better market reach, Stability after riding on Uncle Sam’s shoulder and what not. The Indian market seemed of great value to every car manufacturer. GM focusing on emerging markets and pumping more than ever on Indian operations.
During GM’s CEO Mary Barra visit to India, Chevrolet announced $1 Bn Investment in India. Company official says “With this investment, our aim is to double our market share in India by 2020”.
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OK. So you’re planning to double your market share from a present 1.04% to 2.08% in 2020? Translated, your upcoming 5-year plan is to actually reach a point where you were a year ago! Perhaps, you aren’t aware that you did much better in July 2011 at 5.45% of the Indian car scene!
If any car manufacturer wants to learn on how to not a sell a car, it should be Chevrolet India. With every passing year, the losses borne by GM are shocking. Such is the decline of the company’s market share that car enthusiast have forgotten if the brand even exist. Check the last 5 years market share figures below. Figures are for monthly sales, based on TEAM-BHP's monthly sales reports.
- July 2011 at 5.45%. Ranked no 6 on Indian car makers list.
- July 2012 at 3.77%.
- July 2013 at 3.74%.
- July 2014 at 2.43%.
- July 2015 at 1.04%. Ranked no 9 on Indian car makers list!
At a time when majority of car makers are busy on focusing on customer centric dealership (Upmarket Dealerships, Lounge area, Children play area, Cafe, WiFi, Tablets with Sales person, Valet services, etc.). Chevrolet isn’t even bothered about poor consumer experience at showrooms and building trust in customer.
You’ve to wake up GM. This $1 Bn isn’t working until you build trust with consumers. Discard obsolete offerings, launch Global products in India at the right time(within 6-12 months of global launch), not the dated designs. Fact is, after Cruze and the Beat, you’ve just dumped Chinese designs here. Where’s the striking Impala, Malibu, Sonic twins, and the Traverse? Even if they don’t sell here, launch them to grace your showrooms. That's how VW, Toyota give their customers premium feel at the showrooms. Give Customer a feeling of buying a premium brand, not a discounted product.
Learn from other foreign car makers, design and develop product range for India. Suzuki does it for all their models, Hyundai does it for more than half of their line-up, Honda did it with City more than a decade ago and brought their diesel heart for Indian demands in all their cars after tasting the hard waters, Ford did that with Figo, the EcoSports and now the Aspire series. Heck, even Fiat is at least trying different combinations with all they’ve in hand with Abarth, T-Jet. What are you up to? Recalls?
Upcoming Launches.
Would it Fly?
The Fortuner and the Ford Endeavour have established their names in SUV janta. Even the superior Pajero Sport has to face tough time with its limited reach. What with the facelift of Fortuner and Everest, it’ll get even tough for Chevy. Why bring an old product[Read Trailblazer] to Indian shore? This would have looked good 3-4 years back, but in this age, where the good looking and feature rich Santa Fe finds it tough to please Indian buyer’s mindset. All you’ve got is this! Why was the more accomplished and longer Traverse not considered instead of the Trailblazer?
At a time when every other car manufacturer is busy localising products at Indian plants, Chevrolet is bringing Trailblazer as a CBU. God Bless GM!
Talking of new launches, Spin would’ve looked cool 2-3 years back. Does it take so long to test it for Indian conditions? I mean why risk your chances and delay it for 2016?
Hope the Spin doesn't go in for a Toss.
Time is running out fast and the Billion you are planning to invest won’t help if there’s no competent product and consumer trust. Ask anyone at TATA or FIAT.
So where’s the Problem?
When it comes to brand image, Chevy doesn't even betters Mahindra or TATA. Tavera Quality Issues ripped apart the brand image to even new low and with low resale of GM cars(Opel included) in the used market, Chevy has just nothing to feel proud about. It has to focus more on Product Quality, Better Brand Marketing campaigns. Maruti Eeco with minimal marketing and more than a decade old of Versa looks almost sells twice of the entire Chevy range.
After the Cruze and Beat were launched, not a single Global product has been launched here in India. There has to be a USP of every product to be successful. With the Cruze, it was all American Muscle car look with the most powerful car in the segment tag and for the Beat, it was a futuristic styling ahead of its time coupled with most fuel-efficient car tag when launched. Fact is, Cruze took the market by storm becoming a famous among car enthusiast and Beat finding many takers for its new-age styling. With the new launches, viz., Sail twins and Enjoy, Chevy had nothing to shout about.
- No India specific products
What difference is Trailblazer and Spin going to make to the portfolio? Is there any target customer? Why not launch the Impala and at least focus on a niche segment. Sonata is the only player and that too is a flop. Fill the void. How about the Trax?
This diminishes a product like none other. Ever since the spark days, Chevy is infamous for advertising huge discounts in newspapers. Almost all their cars have discount running throughout the year. One of the few car makers to have a dedicated page for offers. Such a sad state. Why not try 'no schemes and no scheming' for sometime.
And The Way Forward.. - Introduce New products without any delay
It took Maruti and Hyundai less than 2 years to get the Duster competitor ready. Chevy has to find relevant products for the masses. What a good time this is to launch the all new Beat(or the new Spark). Much better is the time to Global Launch it here. Chevy can’t gain more confidence by doing anything else. Launch the new Cruze as soon as it is launched elsewhere.
If Chevy really wants to sustain in this competitive zone, it needs to bring the best products timely and no Chinese designs this time, please.
Arvind Ji Saxena and his team needs to find the mojo back. GM has many competent products in its global kitty. Launch them. If decisions are to be made only by the US Headquarters, GM probably wants to stay in losses.
Chevy has failed to upgrade any of their cars in a major way which a end user would have liked. It was GM who introduced Sunroof and Auto transmissions at a bigger scale with the Optra. What happened after that? Why not play with multiple engine options, add touch screens infotainments, body-kits, change interior theme, new alloy wheel designs, ABS/Airbags on lower variants, addition of sunroof and other stuff to maintain the sales momentum. Look what VW did to Polo by creating so many iterations out of it. How about adding a 1.0 turbo Petrol or a 1.3L diesel mated with an auto tranny under the Beat’s hood. It took Chevy 4 years to add features like steering audio controls and seat height adjust in Beat after the car’s launch. What a shame! Beat has been their best seller for a long time. You don’t need permissions from US for small changes to the feature or specification modifications. At least try before giving up.
With close to 250 dealers. It’s matter of time before new products are launched. Just the dealership experience has to be taken a level up. Why not launch Impala, Corvette or the Camaro to enhance the brand pull and make shoppers at showroom busy with selfies.