General Motors India to Withdraws Sales of Chevrolet Brand in Indian Market
General Motors India has finally decided to take an exit from Indian Car retail market. The tough decision was taken due to the declining sales performance of General Motors India compared to its peers was not upto the mark. The company sold only 883 units of its eight model line-up under the flagship ship Chevrolet brand last month in India.
The company has been facing challenges in terms of sales. According to a SIAM data, market share of the company has dipped to 0.85% as of last financial year.
Last month the company shut down one of its two plants after it could not find a buyer for the Halol-based 20-year-old plant. Also, the company reported a net loss at Rs 663 crore in FY16 with a net worth of just Rs 787 crore, mentioned a national news portal.
The company’s dealer strength has reduced to almost half. A single dealer of GM sells only five cars which is lower than the industry average of 30-40 cars sales per dealer.
On the product front, the company is reportedly facing numerous challenges and has not been able to generate enough profits to sustain in the competition.
The company is reportedly undergoing a full review of its product portfolio. Even speculations are catching up regarding company’s exit from India as it is unable to sustain operations, mentioned a national news portal.