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Case Code: BSTR525
Case Length: 20 Pages 
Period: 1920-2017   
Pub Date: 2017
Teaching Note:Available
Price:Rs.600
Organization :General Motors India Pvt. Ltd.
Industry :Automotive Industry 
Countries : India, Global
Themes: International Business Strategy
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

General Motors' Exit from India – A Wise Move?

 
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INTRODUCTION

 
In June 2017, after General Motors India Pvt. Ltd.’s (GMI) decided to exit the Indian market, some of its dealers planned to initiate legal action against the company and its subsidiary Chevrolet Sales India Pvt. Ltd (CSIPL), for being offered compensation which they claimed was arbitrary. One of the dealers said, “The compensation package (on offer) has a lot of riders, which are very uncomfortable…there will be some who opt for arbitration as there is a clause for that. Some will also opt to file criminal and civil cases.”

GM was one of the first global automakers to enter India after the economy was liberalized in the early 1990s. The company set up a joint venture (JV) along with Hindustan Motors Limited (HM) to produce mid-size cars under the Opel brand. In 1999, GM took complete ownership of the JV. However, the Opel brand failed to resonate with the masses, prompting the company to introduce cars under the Chevrolet brand in 2003. The cars under the Chevrolet brand experienced moderate market success.

 

 
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