General Motors to Stop Car Selling in India

10.08.2017
General Motors to Stop Car Selling in India

The American auto giant General Motors has decided to quit the Indian automobile market..

One of the largest automakers in the world, the General Motors India has decided to stop the sale of its cars in India by the end 2017. This is the latest news to come from GM India. The American auto giant has taken this step after decades of struggle to afloat in the market. The company had 8 cars under the Chevrolet brand - Trailblazer, Cruze, Tavera, Enjoy, Beat and Spark. With the share of less than one percent in the passenger car market, it was well expected from the company to take this step. However, the company has reiterated that it will use its Telgaon plant as an export hub for cars to South America. But this does not soften the blow. India is on the verge of the third largest automobile market in the world and the top car makers decide to quit the market like this, there is definitely a cause for concern.

It is a huge trouble for the entire supply system associated with the company including auto components makers, dealerships, and employees.

Other Shut Down Stories

If we take a deep look at the story, we will realize that the decision to exit Indian came one month after the company shut down its older factory in Gujarat. The workforce was offered to be transferred to Talegaon plant, which took their morale to bottom, even though they knew that the company will continue to do the business overseas.

To know it better, let’s go to the year 1997 when Peugeot took an abrupt decision to shut its shop down leaving over 2000 employees jobless. This shocked everyone including dealers, and spare parts suppliers. There was no real reason for the company to put the brake especially when things started to turn positive.

Then came into the picture, the Daewoo Motors. It also struggled to survive in the market and could not sustain the pace as its parent company in Korea went bankrupt. So, it was GM who brought the Daewoo and tried hard to acquire its Indian. However, the nothing was materialized eventually.

Continuous Blows

Let’s get back to the GM cars in India, the last few years have been a roller coaster ride for the company in India. In 2015, the company announced to invest $1 billion in India in order to revive in the country, the proposal which went into shelves later. Then came the close of Halol plant, which somewhat indicated that the show will not go in India for long. Now, it would be perfectly alright to think if the operations in Talegaon will continue or will take a Halol way. There are rumors that French group PSA will take charge but the company found another facility near Chennai.

Talking about the same in a press statement, the Chairman, and CEO of GM group, Mary Berra said, as the industry is changing continuously, we are also working on to transform our business and trying to establish GM as a more focused and disciplined company.

The company has also ceased its sale in other countries recently including Thailand, Russia and Australia. We all know that GM is amongst the biggest and the highest selling automakers in the world. The US based company tried hard to survive the market, however, somehow it failed to make an impact. On the other hand, its country mate Ford Motors is doing pretty well in the country. We already know the GM India future plans, but we are still afraid that the company might close the Talegaon as well. Apart from GM, the Fiat is also struggling to get the sale from the market. So we can conclude will it be the next to quit the market?