General Motors' Exit from India – A Wise Move?

General Motors' Exit from India – A Wise Move?
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
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Abstract Case Intro 1 Case Intro 2 Excerpts

Background Note

In 1908, American industrialist William C. Durant established General Motors Company (GMC) to consolidate diverse motorcar companies that manufactured brands such as Buick, Oldsmobile, Cadillac, Oakland (later Pontiac), Ewing, and Marquette. In 1916, GMC was incorporated as General Motors Corp. (GM) in Detroit, Michigan. Over the years, the company grew and by the late 1920s, it became the leading American passenger-car manufacturer.

GM expanded internationally and in 1928, initiated its operations in India, wherein it assembled cars, trucks, and buses under the Chevrolet brand. However, GM closed down its operations in India in 1954, due to a change in the Indian national policy that discouraged foreign ownership of automobile companies. Between 1980 and 1990, GM entered into several tie-ups with Hindustan Motors Limited (HM) to produce Bedford Trucks, Vauxhall Motors, Allison Transmissions, and other off-road equipment.

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