How Could General Motors Lose Its Way So Badly In India?

With an aim to hit 5 per cent in a few short years, Karl handed over charge to his successors. And that's pretty much where the downhill ride began. Share today is below 1 per cent of the Indian market, and others like Renault and Ford have cashed in. Bizarre decisions included replacing the Korean (GM-DAT) made Aveo and Aveo U-VA with the Sail family from China. Even worse was the introduction of the rather sub-standard Enjoy MPV subsequently - another gift from China. Delaying the introduction of new models further cost the brand, as did announcing and then cancelling cars for India - like the Spin MPV. A big clue to the destined debacle was when we also did not get the new generation Cruze and GM CEO Mary Barra made a rather uninspiring visit to India. But all this while two other things were happening parallel to the market disaster. GM's technical research centre in Bangalore was getting more and more design and engineering work for global models. And the Talegaon plant was steadily increasing its export output - with over 70,000 cars exported last year.

So why this strange approach to beefing up one end of the business while letting the other go down the drain I wonder. Lack of leadership, quick decisions, and poor product choice can all be blamed. But the part that upsets me is that there appears to be a disdain towards this market from GM's top brass. After all, the company's Indian management team was preparing for the new generation Beat - with all of us in the media having received invites to test drive the new car in May. There was also a sense of urgency with a renewed marketing campaign around the Indian version of the Cruze, and dealers being prepared for the arrival of the new Beat. That the GM India network and management were not informed of the decision made at the Asia Pacific level, to stop sales of cars in India and only use India for R&D and exports - is quite shocking. I feel bad not just because a brand fails to recognise that it must be present in what's pegged to be the world's 3rd largest market in a few short years. It is also not just because Chevrolet and indeed GM are brands with legacy, heritage and a fan following in India. It is primarily because it lets down the efforts and ingenuity of my friend Karl. Just as well he's not around to see this happen? Of course not, I'd rather have him here than not regardless of the circumstances. But it is indeed a pity to see Chevrolet - a brand that claims to 'Find New Roads' - abandon the ones it had once conquered.