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Why GM Pulled Out Of The Indian Market: Video

On December 31st, 2017, General Motors officially stopped selling cars in India. The automaker’s failure to capitalize on the rising demand for cars in India was seen as a major missed opportunity. GM had already experienced a good degree of success in China, Thailand and other emerging markets, but its Chevrolet and Opel brands never really caught on in India and struggled to compete with other foreign brands like Hyundai/Kia, Honda and of course Maruti Suzuki – the latter of which dominates the market with roughly 53% of the market share.

Shortly after it pulled out of the Indian market, former GM president Dan Ammann said that “in the places where we decide to put resources, we want to win,” and if it can’t win, then GM will “find a way to release resources or exit.” But why couldn’t GM “win” in India, as Ammann put it? There was no single reason why its Indian venture failed, but an uninspired local lineup and a lack of good dealer coverage both contributed to its demise in the region.

Shortly after deciding to bail on India, GM sold one of its two manufacturing facilities in the country (the GM Halol plant), while keeping the other facility (the GM Talegaon plant) open to assemble vehicles for export markets. In leaving, the automaker soured the relationship with its local dealers and other business partners and tarnished the reputation of the Chevrolet brand, essentially guaranteeing that it could never operate in the country on a wide scale again. Chevrolet still services cars in the country, however, maintaining its aftersales division to help owners of vehicles like the Chevrolet Spark, Chevrolet Beat and Chevrolet Sail keep their vehicles on the road.

CNBC recently put together a video that takes a deep dive into GM’s massive Indian market blunder and explores exactly what went wrong. Check it out embedded below to learn more about the automaker’s missteps in the region.

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Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. GM thought they could phone it in. Effort has continually been a short.comong of theirs and it doesn’t seem they have fully learned that. Whether the Indian market or close to home with Chevy SS sedan, Cadillac brand, truck interior for top trims, etc.

    Reply
  2. GM is losing market every day. Europe, India… I believe Korea is the next one. A strong company only in North America, China and South America. And is doing the better to weaken itself. Sedans, Silverado, Cadillac and the late eletrics, for example.

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    1. We wish Chevrolet to come back to India, now that the India markets is open for some good cars and no hassle to spend more money on the luxury cars, its now the time for GM to come back to Inida

      Reply
  3. I’m looking forward to the sequel: “Why GM Pulled Out of Australia”. Coming in 2021.

    Reply
  4. China is about to drop a bomb on these secondary markets that will devastate most MFGs as they will be cars sold cheaper than it cost the others to make them.

    The people in India are going to be happy just to have a car and most will struggle to pay much so these cheap cars will dominate.

    Reply
  5. GM exited India and have the market to SAIC and they introduced MG Hector brand. Despite of Indian perception on Chinese products , it’s a roaring success.

    All thanks to GM .

    Reply
  6. Who says they can’t relaunch in India with GEM based cars?.

    Reply
  7. GM may still be involved with India via one of their China JV partnership arrangements. The plan may also include China production/brands for sale in the India market, at very low pricing.

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    1. I some times think the GM fans in us is very foolish. SAIC is a state owned company and has joint venture with Volkswagen ,GM and lot others. China is buying and GM is dieing. look for a date SAIC eats GM

      Reply
  8. The China problem is that every auto maker needs to be in China or they will die.

    But if they go their they have to sell their souls to do business there. What is saving them is killing them but there is no options as our government refused to confront China on trade for way too long.

    We have some leverage now with Hong Kong. China is scared the cry of freedom will spread like the flu there. We are working to leverage our support for Hong Kong into more cooperation in trade. It is not a great option but we were given few options with everyone one in office since Clinton made the first deal.

    China had taken the worlds lunch and eaten it way too long. This needs to be a priority with each person running for a President this year but too few talk of it.

    Reply
  9. GM is time to find a groom to save your rest of life

    Reply

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