General Motors is having a tough time in India. Last year they announced new investment plans in tune of 1 billion US dollars to develop new products for the country and increasing its export capabilities. However, a report in Financial Express says that the funding has been delayed indefinitely.
The report adds that the reason behind this is that the US based car maker does not want India to just be an export hub for its products on the Global Emerging Market platform. It wants the Chevrolet brand to prosper in India and gain market share. Now that is easier said than done. Increased exports would have brought in much needed capital to the loss making operations in India, but now it has a tough climb ahead without the helping hand of a solid exports plan.
The company understands that the products brought to India in association with their Chinese arm have failed to strike a chord with the public. With a plan to see India as a new market, this move might just end up as a something which will spell doom. It is unclear at this point how Chevrolet wants to make this happen.
Both the new Beat hatchback, crossover Beat Activ and Essentia compact sedan look good on paper but all these are pitted against very strong opponents. Beating established players like Maruti, Hyundai and Honda in their playing field is easier said than done. General Motors is yet to make its plan public. And I for one am really excited and waiting to know what do they have in mind.
With the rise of the post-post modern Indian public, it is very essential for a brand to understand the market demand. Products need to be more than a functional piece of machinery and have to be more of an aspirational object to click the mind of a buyer. Can General Motors do that for Chevrolet in India?