GM announced its exit from Indian market on 18th May; Talegaon plant will continue as export hub for overseas markets
General Motors has announced its exit from Indian market on 18th May. The company won’t be selling cars in the domestic market anymore. Since the decision was announced, it remains a concern what will happen to the existing customers. After-sales service has been an important issue and now, Chevrolet is trying to tie up with Mahindra to offer after sales support to the customers.
Despite its withdrawal from the domestic market, GM announced that all warranties on its cars in the country will be honoured and after-sales service will continue as well. Now, if the company ties up with Mahindra, one of the leading auto majors in India with vast service network, lakhs of customers will be benefitted from that.
While the tie up is yet to be confirmed officially, Chevrolet is currently in talks with Mahindra and Mahindra. Apart from that, existing Chevrolet dealerships could also act as authorised service centres for the brand. Presently, it has a network of around 150 dealerships across the country. It is expected that these dealers will be able to use the same infrastructure and apply for franchise of other car brands.
Interestingly, in November 2013, Chevrolet had 285 dealers across the country, and nearly a half of that has been lost to other competitor companies in last couple of years. The American auto major suffered major blow in competition with the rival brands here. None of the models it launched here since 2012 including Sail, Trailblazer and Enjoy MPV couldn’t see success. The company lost around Rs. 3,000 crore and its market share slumped to below 1%, which finally prompted it to exit from one of the major auto markets in the world.
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GM signed MoU with its Chienese partner SAIC to sell the Halol plant in Gujarat, which is expected to be the Chinese auto manufacturer’s production hub for the Indian market in near future. However, despite exit from the domestic market, GM will continue with its Talegaon plant that will act as the export hub for its vast Latin American market.
Source: ET Auto