General Motors In India – No ‘Cruze’; No ‘Beat’

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American auto giant, General Motors decided to pull the plug on its operations in India. Earlier, the company had announced plans of expansion into the Indian market by the launch two new cars the Beat facelift and the Essentia which were showcased last year at the Indian Auto Expo. The Beat Facelift was supposed to launch in 2017, which clearly never happened.

The company had already put a seal to its Halol manufacturing plant last month and will now only focus on exporting to other markets from its Talegaon manufacturing facility. Stefan Jacoby, GM executive vice president and president of GM International, said, “We explored many options, but determined the increased investment originally planned for India would not deliver the returns of other significant global opportunities. 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.” Chevrolet promises to continue to honour its guarantee and warranty services to its customers and dealers.

GM India had multiple occasions to bail out from its fall and it didn’t really need to look far but that never happened apart from the exception of the Beat and Cruze for a while. GM’s competitor Ford too proved that a company can sell cars in India only when they’re made for the market. GM India on the other hand kept forcing incompetent products in the market at a time when the Indian consumer was partying with global car makers offering maximum features at the lowest possible price. There simply was no way this poor management by GM India could’ve gone forever and finally the carmaker decided to leave the Indian market.


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