GM Cuts Its Losses And Decides To Withdraw From India

Customers are clueless and dealers furious as GM cuts its losses and decides to withdraw from India.

- Chanchal Pal Chauhan

Only two years ago, General Motors had declared it would invest another $1 billion in India and launch 10 new models. As late as April 28, Jack Uppal, Vice President, Marketing and Customer Experience at GM India, had sent a signed mailer to the company’s 150-odd dealers, informing that the company would be launching a new model of the Chevrolet Beat – GM’s leading brand in India – in July. “Be ready for the Mobility revolution with the New Beat MCM from Chevrolet,” it read. Less than three weeks later, came the announcement that GM had decided to stop selling in India altogether from the end of the year, though it would continue manufacturing for export at its plant in Talegaon, Maharashtra.

“We explored many options, but determined the increased investment originally planned for India would not deliver the returns of other significant global opportunities,” says Stefan Jacoby, President, GM International. “It would also not help us achieve a leadership position or compelling, long-term profitability in the domestic market. Difficult as it has been to reach this decision, it is the right outcome to support our global strategy and deliver appropriate returns for our shareholders.” Nor is there any possibility of a rethink. “The decision was taken following extensive review of our future product plans and is the final decision. Our best path to improved financial performance is to focus on manufacturing in India for export markets,” a GM India spokesperson told Business Today.