Chevrolet, a world-renowned American automotive brand under General Motors (GM) entered the Indian market in 2003, joining Opel, another GM subsidiary already present in the market. They wanted to capture market share and grow in the rapidly expanding Indian automobile market.
Chevrolet’s Rich Legacy
Chevrolet is famous for their tough, body-on-frame pickup trucks and robust diesel engines. Considering the Indian market where larger vehicles are perceived as more premium, combined with their economical diesel engines, Chevrolet should have been an instant success. Why were they forced to leave the Indian market in 2017?
Entry & Early Success
Iconic American car manufacturer Chevrolet entered the Indian market in 2003, launching a range of models including the Chevy Optra, the Spark & the Tavera. The Tavera made its mark in the utility & taxi segment and is still used in many parts of the country. The Spark sure created a “spark” in the budget hatchback market, offering a robust, well-built, dynamically accomplished vehicle at a bargain price. Chevrolet provided well-engineered, solid vehicles loaded with features at competitive prices, which the market.
Challenges
Not all was rosy, though. Chevrolet soon encountered various challenges that hindered its growth in India. In a market like ours, resale value & a brand identity are crucial to success – Chevrolet was unable to establish either, due to its perception as a premium & expensive brand and the lack of a robust after-sales service network. Consumers outside cities were hesitant to invest their hard-earned money in a brand that didn’t have any service centres nearby. The brand failed to adapt to market trends and the growing demand for compact SUVs and sedans. Model updates were inconsistent and infrequent, with a narrow portfolio that wasn’t a patch on Chevrolet’s global offerings. Despite being an expert in designing tough body-on-frame trucks, Chevrolet did not have any compact SUVs in the market, neither were they able to compete in the full-size SUV space, launching an outdated model of the Trailblazer in India instead of putting their best foot forward.
A Lost Opportunity?
Chevrolet’s ceasing operations in India represented the end of a 14-year journey in India, due to a lack of profitability and declining sales. In a market moving towards SUVs in a big way, with very few “SUVs” on the market having any off-road capability, Chevrolet’s expertise could have paved the way for a bright future in India for themselves financially, and for the market. After all, it was a collaboration between General Motors & Fiat which gave birth to the Multijet Diesel engine, lovingly known as India’s national engine.
