sujith3120

General motors in India--Failed strategies?

Recommended Posts

HI Guys,

Just thought of bringing up GM's approach towards the Indian Market. After the dismal failure of the Opel Brand, they launched Chevrolet, but I'm not sure if their products are really mass market oriented.

Tavera--This MPV looks older than most vehcicles around and looks more liken an ambulance rather than a people carrier.

OPtra--As every one now, this was originally the Daewoo nubira, but launched as the optra.

When they launched the optra magnum with the new headlights, they still has the older optra selling in the petrol version. Now how is that for a strategy?

Spark--The car seems like a ideal first car for anyone, only that it was priced a bit higher. GM should have priced it on par with the Indica xeta and slightly cheaper than the santro..Now it faces comptn from the superior I10.

Aveo--Launching it without a diesel version meant that this product never really made much impact unlike the similarly priced for fiesta or verna.

Forrester--Not many people have even heard of this SUV. A CBU import, this didnt turn any heads either.

I do understand that it is easy for us to write all this stuff, but GM would hav had some strategy in place. But too me, this sort of a strategy / product line up gives a rather shoddy image of chevrolet. I'm not sure if GM would be able to sell much more expensive cars under chevrolet.

What do ya say folks?

Sujith

Share this post


Link to post
Share on other sites

hmm.. i agree, sujith...

when GM motors' india operations are considered, we can tell that, they have actually missed the marketing edge. even with the opel astra, they have priced it too high, and it didnt command any high volumes....

and also the initial flaw in after sale service and high cost of  spares hindered the growth.

now they have trying to correct it all with the new chevy brand.. i feel that, they have missed somewhere too...

Share this post


Link to post
Share on other sites

it actually depends on what GM is aiming? is it a clear marketshare in India or just a mere presence in the market or whatever? you must also look at the company's intentions / target to derive any particular strategy, if there is one at all.. thats a thumb rule in any business

Share this post


Link to post
Share on other sites

well..........GM did not succeed because of 2 reasons

1. high priced cars

2. high maintenance

they have corrected the later aspect of late......but the former is yet to be adressed

Share this post


Link to post
Share on other sites

If GM wanted just a mere presence in the Indian Market to start with, why not take the route Honda or Toyota have taken? They just have 2 or 3 products each in a span of 5-7 yrs, but command good recognition with nice, solid cars like the Innova, corolla, city and the civic.

Share this post


Link to post
Share on other sites

I have infact completely missed the Aveo UVA. This car has not even been able to beat the getz'z sales, forget about the swift's!

And I think that the Captiva may not do all that well unless it is a diesel.

Magnum diesel--I'm sure more buyers would actually go for the SX4 diesel when it is launched next yr.

Share this post


Link to post
Share on other sites
well..........GM did not succeed because of 2 reasons

1. high priced cars

2. high maintenance

they have corrected the later aspect of late......but the former is yet to be adressed

i agree...i_see..bu t only partially...

i disagree.. with optra.. its was not highly priced.. it was good value for money.. and a good, spacious, comfortable car..... that may be the reason why it was almost successfull in india...unlike the other GM models...

Share this post


Link to post
Share on other sites

not everyone buys Maruti or Hyundai. am sure GM did not aim to capture teh market share of Maruti either... it depends on what basis they design the products and target customers... we have received good reviews on Aveo UVA, yu cant comment its not speculated in the market since yu have forgotten itsmiley2.gif

Share this post


Link to post
Share on other sites

Opel's high flying customers have been usurped by Skoda. Those who bought the Astra have now moved on to The Octavia and Laura. Now GM's customers are a confused lot, they don't know whether they want value for money or an image. So there are few takers for its cars. It was able to sell only 2300 Sparks despite all the heavy discounts.

Share this post


Link to post
Share on other sites

Its high time GM relearnt the tricks of the trade, atleast as far as a market like India is concerned. You don't have much up your sleeve and yet, you price your cars higher and expect the people to make a beeline for your cars, probably just because you were the numero uno earlier. Doesn't make much sense.

Share this post


Link to post
Share on other sites

ya.. i am also quite dissappointed with GM.. there cars are highpriced at first and when the sales dont pick up they give discounts which makes them a discount brand.. i think GM is No.1 in giving discounts atleast they are good in something.. they did a mistake by discontinuing the opel brand.. and 2nd problem is high maintenance.. they should price there cars agressively like maruti did with sx4 and swift.. optra is the only car which is doing good right now.. i just love the chevrolet aveo but it doesnt have the performance and average.. they should have launched a diesel model instead of launching so many cars like spark, uva and srv..  

Share this post


Link to post
Share on other sites

but guys the Chevy optra magnum diesel is quite a success and i feel its  better than the Octavia.

THe UVA is really struggling , Spark is somewhat Moving but though not in  very good numbers , the Aveo also struggles and after the launch of SX4 the Aveo is having Dreamless nights

 

Hoping for Chevy to improve thier portfolio

 

regards,

Priya

 

Share this post


Link to post
Share on other sites

All I can say is that we should not be under the illusion that we the laity know more about strategies than do the people who are actually framing them.  I dont think it possible for us to take into consideration all the factors that go behind or into if you like things like pricing etc.  This is my considered opinion and hope it does not offend anyone.

Share this post


Link to post
Share on other sites

Optra Diesel has been a hit (thanks to the killer engine and price) and should they price their upcoming CAPTIVA well between 15-18 lacs, it could very well be a new market leader in Luxury SUV Segment. This SUV has brilliant diesel engine under it's hood and equipment levels, safety features are better than those of Ford Endeavour.

 

Last but not least, they are learning from their mistakes.

Share this post


Link to post
Share on other sites

I think they won't. Rumour has it that they will be offering Automatic Gearbox and the overall equipment levels are going to be generous. It is believed that most of the consumers will like 7 Seater and a good diesel engine over 5 seater and petrol engine of CRV.

 

Ford Endeavour (Current Model) will probably bite the dust in 2008.

 

Whatever, it's going to be hit as it's other main rival Santa Fe will be priced well above 20 lacs which means it will competing against the likes of X-Trail rather than Captiva.

Share this post


Link to post
Share on other sites
Elantra is outdated and diesel's from hyundai are the best.smiley20.gif


really..?

hmm.. any way i dont have any hard feelings either...... i like fiat diesel engines more....

and ofcourse.. the toyota and honda ones.....

 

Honda is relatively new to the diesel sector, their biggest capacity diesel engine is the 2.2 lit. So they don't have a diesel in the US: these are not my words but that of the Honda Motor CEO. That's why they feel 'less' confident to bring in their diesel engine here, too. Hyundai was the first to introduce the 'affordable' common rail diesel here in India, in the Accent. Till then everyone was making only IDI and TDI, except probably Merc. Even now Hyundai makes one of the most refined and affordable diesel's in the country. Where other companies, hold back eg, Ford they could have easily plonked in the 1.6 tdci in the Fiesta, instead of the underpowered 1.4. Hyundai goes ahead with the 1.5 in it's Getz too. The only problem with Hyundai is image: thats why their bigger cars are not as big a hit as their small one's. Ditto with Maruti: how many Vitara's do you see. Though the products are good they fall grossly short on the "image" quotient.
Durango Dude2007-12-10 04:58:00

Share this post


Link to post
Share on other sites

IMO, the serious problem with Grand Vitara is lack of equipment and power at this high a price. Further petrol engine with poor milage have added to their worries.

 

Earlier version of their Grand Vitara was way overpriced.

 

Let's see if Maruti plans to bring in their more powerful MultiJet diesel in Grand Vitara, couple that with their massive after sales service network, competitive spares and things will really go off well.

 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...