After a long but unprofitable stint at India's automobile market, General Motors has finally decided to wind up its sales operations, as well as sell off one of its two manufacturing units. What led to this sudden decision? Who is at fault and for what reasons? Who all are affected? What will be the effect of this and who is going to suffer the most? View this brief presentation to find out !!!!

1. General Motors steers away from the Indian market –
A Case Study for analyzing the manoeuvre
Presented By :-
Sagar Ghosh

2. South
Africa
Russia
Markets from which
General Motors
has exited
 India is not the only market where General Motors has failed to
make a mark.
 Sold massive European operations to France’s Peugot, exiting a
huge but unprofitable market
 Shut down money-losing operations in Russia, South Africa,
Australia as well

3. In this Case Study, we will focus on :-
1. Clear objectives of GM’s withdrawal from the Indian market
2. Core issues GM was facing in the Indian market
3. Flaws on GM’s part which led to its exit
4. Effect on the automobile industry
5. Solutions offered by the company
The two concluding slides will contain :-
Appendix A) The presenter’s inference &
Appendix B) The bibliography

4. Clear objectives of GM’s withdrawal from India
General Motors CEO Mary
Barra’s focus on profitability
USA
GM also needs to consolidate
its market in USA, where it is
under threat from companies
like Volkswagen & Toyota
The Pie-chart here
clearly indicates the
miniscule market share
of General Motors in
India.

5. Core issues GM was facing in India
Even though the Indian automobile market grew by 9%
to cross the 3 million unit mark;
GM’s market share in India reduced to 1%
Rapidly declining
dealer network
(From 240 to 150)
Reputation damaged by the
Chevrolet Tavera scandal in 2013,
affecting sales
As it can be seen in this
graph :-
General Motors’
profitability reached a
new low in 2014.
1
2 3
4

6. Flaws on GM’s part which ruined its prospects in India
leading to the withdrawal – According to industry veterans
Mr. Jagdish Khattar
Former MD
Maruti Udyog Ltd.
 Frequent changes in top management
(9 CEOs in 21 years)
 Lack of consistency in its product & brand
strategy
(started with Opel, shifted to Chevrolet &
finally to Chinese cars)
 Frequent launches and withdrawal of
models (20 cars launched & 10 cars
withdrawn in 2 decades)
Mr. Gerard Detourbet
Global Vice-President
Renault Nissan
“General Motors’ imposition of its
international strategies and use of global
specifications with disregard to Indian
specifications led to GM India’s downfall”

7. Effect on the automobile industry
In the Indian market
In the
global market
• More than 15,000 jobs
affected, both in GM as well as
its dealerships
• Almost 150 dealers in India
stuck with 18000 Chevrolet
cars in their inventory
• With GM out, other
companies will get a bigger
market share in India’s
promising automobile market
• Will make it easier for GM to
tackle Volkswagen and Toyota
in USA
• The vacancy can attract other
MNC’s to operate in India

8. A. A transition package has been announced for
each dealer (INR 60 – 75 lakh)
B. A Stock clearance (stock liquidation) plan is
being finalized to relieve the dealers of the
stockpile in their inventory (some if not all)
A. 1100 workers in GM, Halol
(Gujarat) given option to
transfer to Talegaon plant.
B. Severance package of
45 days salary will be given for
each year of service to GM
employees who will be fired.
A. All warranties will be
honoured
B. Service network to be
maintained all over India
for maintenance of
Chevrolet vehicles on road
(almost 600000 cars)
For Dealerships
For GM Employees For present customers

9. PRESENTER’S INFERENCE – LESSONS LEARNT FROM THE CASE STUDY
A business should
create a product with
strict adherence to
market needs
Introducing and
withdrawing brands
on a regular basis will
discourage potential
customers
Adapting
unethical practices
for short-term gain
may lead to
long-term ruin.
Frequently changing
the top management
in a company
will prevent
materialization of
long-term strategies

10. Thank you for your time
and patience.
Here is a list of websites
from where the
information has been
sourced ….
www.gm.com
www.wikipedia.org
www.usatoday.com
www.businesstoday.in
www.team-bhp.com
www.autelligence.com
www.firstpost.com
www.forbes.com
www.reuters.com
www.cardekho.com
www.economictimes.com
www.freep.com
And last but not the least,
www.google.com for making
my research easier