What can make the GM get market share in India

Carmageddon · 11th June 2009, 10:55

Hi All,

I have owned 3 GM cars - Aveo 1.6, Corsa 1.6 GSi and Astra Club petrol. To me, the biggest issue is the extremely poor resale value.

I bought the Corsa and an Alto Lxi around the same time (2002), and sold both cars in 2007... and guess what, the Alto got a higher value!!! So effective depreciation was 80% for Corsa and only 50% for Alto over 5 years!!! Needless to say the Astra suffered the same fate.

No matter how much money you have, that doesnt make any sense. It's the same with the Aveo too... I bought an Aveo and SX4 around the same time - but the resale values are already poles apart.

I like the solid build and nice interiors of GM cars, but I doubt I can bear such high depreciation again

Carmageddon · 11th June 2009, 11:19

Sorry for this slightly OT post, but another thought I have is the somewhat confused positioning of GM cars in India.

B-school taught me that you have to target a specific consumer segment with your product. My understanding of successful auto co's in India is:

1. Maruti - Value seekers. Winning formula of competitive pricing, good service, low running costs and strong resale

2. Hyundai - similar to Maruti, but with more focus on quality (although I've never owned a Hyundai, just my view)

3. Honda - Quality seekers. High cost, high quality, driving pleasure, good resale

4. Toyota - similar to Honda, but perhaps appeals to a older demographic (due to better reliability and less radical designs)

As for GM: by selling Opels, Subaru's and Daewoo's under the same brand - I'm not sure who they are targeting. Most of their cars don't make a strong statement but are competent in many dimensions. Unless you are top-of-the-ladder on some dimension - whether performance, resale, efficiency, service etc. you will never have the brand pull to get people into the showroom. A car needs to tug on either your heart or brain to be purchased, and I'm afraid most GM cars don't do that

Just my take - no offense to GM owners!

mjothi · 11th June 2009, 12:34

OT: Offlate I see that there ads are not showing GM logo anymore. Guess they are trying to build the Chevy brand. Will this relieve the fear of US bankruptcy news of GM? I doubt.

GSMINC · 11th June 2009, 14:10

Quote:

Originally Posted by mjothi

OT: Offlate I see that there ads are not showing GM logo anymore. Guess they are trying to build the Chevy brand. Will this relieve the fear of US bankruptcy news of GM? I doubt.

Yes, you are right, at the new dealership KROPEX, one even I hoarding/banner of GM

CarsPG · 11th June 2009, 14:47

I think if they stopped changing prices (discounts) so often it would help!

hrag · 11th June 2009, 17:40

Quote:

Originally Posted by khan_sultan

Your thread question:
-------------------------
"What can make the GM get market share in India"

Answer:
-----------
1. Sell cars
2. Find customers who will buy their cars

A few minutes ago, I got a call from Sundaram Motors asking if I was interested in the Spark and that my number was given to them by someone who attended the recent free service camp in Bangalore. Looks like GM will have to take care of point 1 and existing owners will take care of point 2

khan_sultan · 11th June 2009, 17:53

Quote:

Originally Posted by hrag

A few minutes ago, I got a call from Sundaram Motors asking if I was interested in the Spark and that my number was given to them by someone who attended the recent free service camp in Bangalore. ..

Same here. I also got a call just 10-15 minutes ago and they also mentioned the EXACT same thing.

They told me the name of the person also who has passed on my contact details to them in exchange for a free service

.

So you GM owner -- be warned, because your car will get a flat soon.

gowda79 · 11th June 2009, 17:58

Quote:

Originally Posted by hrag

A few minutes ago, I got a call from Sundaram Motors asking if I was interested in the Spark and that my number was given to them by someone who attended the recent free service camp in Bangalore. Looks like GM will have to take care of point 1 and existing owners will take care of point 2

Quote:

Originally Posted by khan_sultan

Same here. I also got a call just 10-15 minutes ago and they also mentioned the EXACT same thing.

They told me the name of the person also who has passed on my contact details to them in exchange for a free service

.

So you GM owner -- be warned, because your car will get a flat soon.

I guess our Chevy team has given the info and our MJourno/MAnna first in the list

mjothi · 11th June 2009, 18:31

Quote:

Originally Posted by hrag

A few minutes ago, I got a call from Sundaram Motors asking if I was interested in the Spark and that my number was given to them by someone who attended the recent free service camp in Bangalore. Looks like GM will have to take care of point 1 and existing owners will take care of point 2

Quote:

Originally Posted by khan_sultan

Same here. I also got a call just 10-15 minutes ago and they also mentioned the EXACT same thing.

They told me the name of the person also who has passed on my contact details to them in exchange for a free service

.

So you GM owner -- be warned, because your car will get a flat soon.

Quote:

Originally Posted by gowda79

I guess our Chevy team has given the info and our MJourno/MAnna first in the list

No doubt in that

What to do, when I see the blanks to be filled with names, first thing I remembered was those 2 names. So, just filled it up.

But that was late. Almost after 5 days they give a call.. That's bad, GM. lol...

P.S. I have no use in so called free service. Because, I am already in cashless scheme. hehehe

BaCkSeAtDrIVeR · 11th June 2009, 18:34

When I got my wagonR, both (just launched) Spark and U-VA were overpriced. It was not about features. The cars did not seem any different from MSIL offerings in "fit and finish" and NVH. (Of course, I was a newbie car buyer then).

ask77 · 11th June 2009, 22:01

Quote:

Originally Posted by Carmageddon

Hi All,

I have owned 3 GM cars - Aveo 1.6, Corsa 1.6 GSi and Astra Club petrol. To me, the biggest issue is the extremely poor resale value.

I bought the Corsa and an Alto Lxi around the same time (2002), and sold both cars in 2007... and guess what, the Alto got a higher value!!! So effective depreciation was 80% for Corsa and only 50% for Alto over 5 years!!! Needless to say the Astra suffered the same fate.

No matter how much money you have, that doesnt make any sense. It's the same with the Aveo too... I bought an Aveo and SX4 around the same time - but the resale values are already poles apart.

I like the solid build and nice interiors of GM cars, but I doubt I can bear such high depreciation again

Exactly. I bought a 3 year old 35K done optra for 3 lacs . The first owner must have paid around 9 lacs for the same. But I am very happy with the same. For the cost of less than an Alto I get a C + segment car 108 bhp , power windows power steering magnificent A/c . Independent rear suspension excellent build quality and even good service. Have been runing it on LPG and just done 1850 kms trip to manali and shimla and back without any trouble and in excellent comfort . So i would recommend GM cars as excellent second hand vehicles if you are able to verify service history etc.

mjothi · 17th June 2009, 10:54

Another interesting link.

:: AUTOCAR INDIA - CAR AND BIKE MAGAZINE ::

Seems autocarindia had a poll last month, not able to get that link, sorry.

Quote:

Amazingly our last week’s poll has uncovered a very adventurous streak amongst Indian car buyers with a thumping 88% of voters stating that they would plum for a GM car even now.

Do we really do what we say

devarshi84 · 17th June 2009, 11:04

My close friend just bought a spark a month ago. I was the only guy who suggested him the car. With his friends and family and everybody else against, he went ahead with my suggestion.

He is a happy man. got 17kmpl on the highway and his mom finds the car comfortable.

Most people just asked him to look at Maruti, Hyundai and Honda. Yes A honda city (yaar! loan hi lena hai na.)

It's sad to say but Indians mostly give dumb suggestions when it comes to cars based on what they heard (mere friend ke friend ke pass hai, mere chacha ke dost ke pass hai etc etc)

PS:- My dumb roomie in Toronto who's not even seen the Honda city swears by it coz some friend of his father said that it gives them 20kmpl in city. Lets see GM get that kind of statements.

shortbread · 17th June 2009, 16:08

I think the biggest issue with GM is (well putting aside that its Bankrupt) is its resale value, The Spark/Tavera aside all its other models take a huge hit when selling second hand as compared to the market average. On the plus side this makes it a good second hand bargain but not happy news if one shelled out money on a new GM product. The main reasons are

Huge discounting, every time a GM products sales figures start falling, they just dish out unbelievable discounts. Firstly it doesnt give them a big increase in sales anyways, Price isnt the exact reason GM cars get overlooked. This price drop severely puts doubt about the car in the market and also affects its resale value.
There is no proper Market research done before vehicle launches, being mainly an assembly operation for GMDAT, Korea, they just launch any and every car they make. There is no focus as to wether it is really suitable for the Indian market. Compare this with the Japanese biggies, you wont see Toyota or Honda just launching any product and keep their fingers crossed for success.
No product continuity. Due to the above reason once sales are negligible they just pull the products out, eg. Corsa Station Wagon, Vectra, Forrester, SRV etc..etc... People who brought these products suffer from horrendous resale values, poor *** and on the road look like individuals who made poor purchasing decisions.
They are also pretty poor powerplant wise. On onehand they have no diesel expertise in the small/medium car sector. Even in the petrol stakes forget the likes of Toyota or Honda, there existing line up of engines are easily surpassed by the newer powerplants of Maruti and Hyundai. Their existing line up are just updated versions of engines that have been in the business for more than a decade and some still use cast iron blocks. This is far from what one expects from a company that frequently calls itself 'No.1'

harishsegar · 17th June 2009, 17:08

I have owned GM cars and from my experience their cars & service networks are decent. I feel they dont represent themselves very well. They seem to be neither projecting themselves as a high end / snob value / status symbol nor as a common man car like maruti / tata. (p.s: im not picking on any brand. Just using it as example)

Having a good product is one thing. Positioning it and selling it is a completely different story. GM needs to improve here.

View Poll Results: Why Aveo/UVA does not sell well?
After Sales Network	25	37.88%
Resale Value	28	42.42%
Not good features available for the money I pay	11	16.67%
Missing of Diesel heart	28	42.42%
Pricing Strategy	19	28.79%
US bankcruptcy new and related fear on people mind	32	48.48%
Others - Please mention in post.	9	13.64%
Multiple Choice Poll. Voters: 66. You may not vote on this poll

11th June 2009, 10:55	#31
Carmageddon BHPian Join Date: Dec 2008 Location: Mumbai Posts: 61 Thanked: 24 Times	Resale resale!! Hi All, I have owned 3 GM cars - Aveo 1.6, Corsa 1.6 GSi and Astra Club petrol. To me, the biggest issue is the extremely poor resale value. I bought the Corsa and an Alto Lxi around the same time (2002), and sold both cars in 2007... and guess what, the Alto got a higher value!!! So effective depreciation was 80% for Corsa and only 50% for Alto over 5 years!!! Needless to say the Astra suffered the same fate. No matter how much money you have, that doesnt make any sense. It's the same with the Aveo too... I bought an Aveo and SX4 around the same time - but the resale values are already poles apart. I like the solid build and nice interiors of GM cars, but I doubt I can bear such high depreciation again
	() Thanks

11th June 2009, 11:19	#32
Carmageddon BHPian Join Date: Dec 2008 Location: Mumbai Posts: 61 Thanked: 24 Times	4 P's - who is GM targeting?? Sorry for this slightly OT post, but another thought I have is the somewhat confused positioning of GM cars in India. B-school taught me that you have to target a specific consumer segment with your product. My understanding of successful auto co's in India is: 1. Maruti - Value seekers. Winning formula of competitive pricing, good service, low running costs and strong resale 2. Hyundai - similar to Maruti, but with more focus on quality (although I've never owned a Hyundai, just my view) 3. Honda - Quality seekers. High cost, high quality, driving pleasure, good resale 4. Toyota - similar to Honda, but perhaps appeals to a older demographic (due to better reliability and less radical designs) As for GM: by selling Opels, Subaru's and Daewoo's under the same brand - I'm not sure who they are targeting. Most of their cars don't make a strong statement but are competent in many dimensions. Unless you are top-of-the-ladder on some dimension - whether performance, resale, efficiency, service etc. you will never have the brand pull to get people into the showroom. A car needs to tug on either your heart or brain to be purchased, and I'm afraid most GM cars don't do that Just my take - no offense to GM owners!
	() Thanks

11th June 2009, 12:34	#33
mjothi Senior - BHPian Join Date: Dec 2007 Location: Bangalore Posts: 3,287 Thanked: 231 Times View My Garage	OT: Offlate I see that there ads are not showing GM logo anymore. Guess they are trying to build the Chevy brand. Will this relieve the fear of US bankruptcy news of GM? I doubt.
	() Thanks

11th June 2009, 14:47	#35
CarsPG BHPian Join Date: Jan 2009 Location: Pune Posts: 352 Thanked: Once	I think if they stopped changing prices (discounts) so often it would help!
	() Thanks

11th June 2009, 18:34	#40
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	When I got my wagonR, both (just launched) Spark and U-VA were overpriced. It was not about features. The cars did not seem any different from MSIL offerings in "fit and finish" and NVH. (Of course, I was a newbie car buyer then). Last edited by BaCkSeAtDrIVeR : 11th June 2009 at 18:46.
	() Thanks

17th June 2009, 11:04	#43
devarshi84 Senior - BHPian Join Date: Jun 2005 Location: Ahmedabad - Tor Posts: 4,024 Thanked: 211 Times View My Garage	My close friend just bought a spark a month ago. I was the only guy who suggested him the car. With his friends and family and everybody else against, he went ahead with my suggestion. He is a happy man. got 17kmpl on the highway and his mom finds the car comfortable. Most people just asked him to look at Maruti, Hyundai and Honda. Yes A honda city (yaar! loan hi lena hai na.) It's sad to say but Indians mostly give dumb suggestions when it comes to cars based on what they heard (mere friend ke friend ke pass hai, mere chacha ke dost ke pass hai etc etc) PS:- My dumb roomie in Toronto who's not even seen the Honda city swears by it coz some friend of his father said that it gives them 20kmpl in city. Lets see GM get that kind of statements. Last edited by devarshi84 : 17th June 2009 at 11:05.
	() Thanks

17th June 2009, 16:08	#44
shortbread Senior - BHPian Join Date: Apr 2008 Location: KL 7 Posts: 2,394 Thanked: 6,299 Times	I think the biggest issue with GM is (well putting aside that its Bankrupt) is its resale value, The Spark/Tavera aside all its other models take a huge hit when selling second hand as compared to the market average. On the plus side this makes it a good second hand bargain but not happy news if one shelled out money on a new GM product. The main reasons are Huge discounting, every time a GM products sales figures start falling, they just dish out unbelievable discounts. Firstly it doesnt give them a big increase in sales anyways, Price isnt the exact reason GM cars get overlooked. This price drop severely puts doubt about the car in the market and also affects its resale value. There is no proper Market research done before vehicle launches, being mainly an assembly operation for GMDAT, Korea, they just launch any and every car they make. There is no focus as to wether it is really suitable for the Indian market. Compare this with the Japanese biggies, you wont see Toyota or Honda just launching any product and keep their fingers crossed for success. No product continuity. Due to the above reason once sales are negligible they just pull the products out, eg. Corsa Station Wagon, Vectra, Forrester, SRV etc..etc... People who brought these products suffer from horrendous resale values, poor *** and on the road look like individuals who made poor purchasing decisions. They are also pretty poor powerplant wise. On onehand they have no diesel expertise in the small/medium car sector. Even in the petrol stakes forget the likes of Toyota or Honda, there existing line up of engines are easily surpassed by the newer powerplants of Maruti and Hyundai. Their existing line up are just updated versions of engines that have been in the business for more than a decade and some still use cast iron blocks. This is far from what one expects from a company that frequently calls itself 'No.1'
	() Thanks

17th June 2009, 17:08	#45
harishsegar BHPian Join Date: Jul 2005 Location: Mumbai Posts: 178 Thanked: 2 Times	I have owned GM cars and from my experience their cars & service networks are decent. I feel they dont represent themselves very well. They seem to be neither projecting themselves as a high end / snob value / status symbol nor as a common man car like maruti / tata. (p.s: im not picking on any brand. Just using it as example) Having a good product is one thing. Positioning it and selling it is a completely different story. GM needs to improve here.
	() Thanks