GM India claims 96% of dealers have accepted ‘Transition Assistance Package’

General Motors India, which on May 18 announced that it would withdraw from the domestic vehicle sales market by the end of 2017, to focus on exports says it is making headway in its business reorganisation.

In a statement issued on August 11, GM India president and managing director, Kaher Kazem, said the company continues to work with its business partners, dealers and suppliers and employees to deliver an orderly transition. “GM India recognises the strong partnership with our dealers and we have been working closely with our network to provide support through this transition,” said Kaher.

“The overwhelming majority – 96 percent of dealer partners – have already accepted GM India’s Transition Assistance Package. We are continuing to work with our dealer partners to sustain an appropriate service and repair network for Chevrolet customers in India,” said Kaher.

GM India says it will continue to honour all warranties and provide comprehensive aftersales support. The customer support centre will remain open and all warranties and service agreements, as well as ongoing service and parts requirements for all vehicles, will continue to be honored. GM India customers can call 1-800-3000-8080 or email the company at gmi.cac@gm.com

It may be recollected that on June 27, GM dealers had held a dharna or protest at Delhi's Jantar Mantar as they were unhappy with GM not keeping them apprised of its decision to shut down domestic sales in the country.

Exports up 72% in April-July 2017
GM India, whose Talegaon plant in Pune is now solely dedicated to manufacturing cars for export markets, has shipped a total of 29,210 units in the April-July 2017 period, recording growth of 72.57 percent. On June 26 this year, the company began exports of the Chevrolet Beat sedan to Latin America. The Beat Essentia is a compact sedan first showcased at the 2016 Auto Expo and based on the new Beat.

GM India, which until end-June, was producing only the left-hand-drive Chevrolet Beat hatchback at its Talegaon, Pune plant, exports to many markets including Mexico, Chile, Peru, Central American and Caribbean countries, Uruguay and Argentina. In FY2017, the company exported 70,969 units, which mark 88 percent YoY growth.

The Beat sedan, along with the new Beat hatchback and the Beat Activ crossover, is one of the three new Chevrolet products originally planned for launch in the domestic market this year. But with GM's pullout from the domestic market to focus solely on export of Indian-made cars, these cars are now being produced at the Talegaon plant solely for overseas markets.

As for GM, the Make In India strategy is helping sustain the drive for global OEMs like GM and also Ford, Volkswagen and Nissan.

“Throughout this transition, we have also been able to achieve significant progress in our export manufacturing plan, working with our local supply base. We are consolidating manufacturing at our Talegaon plant, with production ceasing at the Halol plant in April and the sale of assets on track. We will continue to examine how best to improve utilisation of the plant at Talegaon,” said Kaher.

“Over the past year, our exports have tripled and GM India was the nation’s fifth largest exporter of passenger vehicles in the first quarter of fiscal 2018. We have achieved significant milestones in export manufacturing, including the launch of the Beat sedan to Latin American markets and the start of engine and vehicle kit exports.” 

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