We Will Never Re-enter Domestic Market: General Motors India
After 21 years of operations in India, General Motors has announced that it will stop selling cars in India as a part of its global restructuring actions. In an e-mail interaction with BW Businessworld, Kaher Kazem, President and Managing Director of General Motors India, said that the company has no plans to re-introduce the ‘Chevrolet’ brand in the domestic market. Below are the edited excerpts:
Firstly, is there a scope by GM to re-enter India? If yes, when exactly?
We do not intend to sell Chevrolet vehicles in the Indian market in the future. We firmly believe that focusing our business on exports is the best option to deliver a profitable and sustainable business in India.
Will you restrict yourself exporting only Chevrolet-branded cars or are you open to shipping out 'Opel' branded products also?
GM India currently exports the Chevrolet Beat hatchback and sedan to a number of left-hand-drive markets in Latin America and we recently announced regular shipment of sedan version of Chevrolet Beat to Latin America Markets. We have a robust export outlook that supports continued manufacturing at our Talegaon plant and further leveraging of our local supply base. Focussing on exports is the best path to profitability, although we continue to look at options to enhance our business.
What are you actually doing with your existing dealer network?
GM India recognizes the strong partnership with our dealers and we are working with them to provide appropriate support through this transition. We are providing our dealer partners with a fair and transparent Transition Assistance Package based on a methodology that is consistent across all dealers. The methodology is then applied to the individual circumstances of each dealership. These discussions with individual dealers are confidential. We are making good progress in supporting our dealers through this transition in an orderly manner that puts the needs of our customers at the centre of what we are doing.
Are you tying up with Mahindra for after-sales services in India?
We have prioritized providing certainty, stability and an orderly transition for our customers, our employees, our business partners. We will maintain an existing service network across key locations in India, as well as continuing to honour Chevrolet vehicle warranties; provide support through Chevrolet’s Roadside Assistance, and spare parts to support maintenance and repair.
