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


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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