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Majority of GM India dealers agree to transition package

15th Aug 2017 7:03 am

Company states 96 percent of dealers accepted ‘Transition Assistance Package’; GM India shifts focus towards manufacturing and exports.

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In line with its recent strategy, GM India seems to be underway with wrapping up its domestic sales operations in India. Through a statement issued on August 11, GM India president and managing director, Kaher Kazem, said, “A majority of dealer partners have already accepted GM India’s Transition Assistance Package. And we are also continuing to work with our dealer partners to sustain an appropriate service and repair network for Chevrolet customers in India.”

Company officials informed Autocar India that the size of the compensation package will vary from dealer to dealer and be dependent on various factors like period of association with the brand, liquidation of inventories, future support, etc. GM also says that 96 percent of its network’s 140 dealers have agreed to the compensation package and talks are continuing with the remaining 4 percent who have not agreed to the said terms and conditions yet.  

Recently, in June, there was a protest held by GM dealers at Delhi's Jantar Mantar, unhappy with GM not keeping them apprised of its decision to shut down domestic sales in the country.

GM India has said that it will continue to honour all warranties and provide comprehensive aftersales support. The customer support centre will remain open and all warranties and service agreements, as well as ongoing service and parts requirements for all vehicles, will continue to be honoured.

Focus on exports

Manufacturing at GM India’s Talegaon plant is now solely focused on exports, which were up by 72 percent in April-July 2017 and the company shipped a total of 29,210 units. On June 26, this year, the company began exports of the Chevrolet Beat sedan to Latin America. The Beat sedan, along with the new Beat hatchback and the Beat Activ crossover, is one of the three new Chevrolet products originally planned for launch in the domestic market this year. But GM's pull-out means these cars are now being produced at the Talegaon plant solely for overseas markets.

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