Analysis of General Motors

failure in India

Group 1
 Analysis of General Motors failure in India
 Automakers that rule the world, have mostly remained fringe player’s in India’s car
market and as of March 2020, the highest share is held by Toyota with a mere 4.13%.
The reasons behind GM failure are:
 Their lack of knowledge of the Indian market and having a mindset that wasn’t
tailored to the local requirements.
 Focusing on making big cars that offer fat margins.
 Poor production setup, distribution strategy and service network for Indian market.
 Frequent launches and withdrawal of models discouraged the customers on buying
cars from GM and demotivated the dealers network as on losing out potential
customers.
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 Use of outdated technology: In trying to be cost efficient and still meet certain
emission requirements GM used technology that barely helped them scrape
through.
 Clubbing the Indian market with the Chinese for the development of ‘emerging
market’ plans.
 Lack of Product variety: They did not have a diverse product portfolio, like
Maruti and Hyundai offered.
 Their inability to read the market and adapt quickly: When SUVs started
coming into the limelight they were left floundering around MVPs and
hatchbacks.
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 Weak Leadership: The GM organization here in India turned out to be more bureaucratic
than any other automotive manufacturer in India which was one of the critical reason for its
downfall.
 Company focusing on using the manufacturing facilities for exports now rather than looking
to penetrate into the Indian market.
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