General Motors is so Casual in India-2

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India is going through change of guards. Hopefully new government will take necessary steps to put faltering markets back on track. General Motors India’s Vice President P. Balendran also emphasized need of second generation economic reforms to jump start economic growth. But Bala Sir (P Balendran)…the kind of casual approach of government off tracked markets in last 4-5 years, is pretty explicit at GM India. One can easily understand extent GM’s casual approach in India without deep research. Statements by top management of GM that came in last couple of years are enough to fortify opinion that GM believes more in speaking than doing.

First Statement: Karl Slym says General Motors India has set a target of hitting the 3-lakh mark in annual sales in 2013.

On Jan27 2011 GM India’s then MD Karl Slym said company is targetting to close year 2013 with sales of 3 lac units. Access this statement here…

Company sales in India during 2010 was 1.10 lakh units. While in the year 2013, for which GMI was targeting to achieve 3 lakh units, company could sell just 86 thousand odd units. Between 2011 and 2013 company never seemed to moving towards achieving its target of 3 lakh units.  During these 3 years company launch Beat, Beat diesel, sail UVA, Sail Sedan, Enjoy & Cruze dotting almost all segments with growth prospects. Even after launching these six crucial models, company’s sales squeezed by 25 percent in 2013 in comparison to sales of 2011.

3 Year of Reverse Gear…

Year        Sales

2010        1,10,804 

2011        1,11,510

2012        92,000

2013        86829

Second Statement:  Vikas Jain says GM India aims to double sales by 2013.

While launching Sail UVA GM India’s director marketing Vikas Jain gave an ambitious guidance about companies expectations with UVA and 2 other upcoming models. On Nov. 2, 2012 Jain said company is targeting to double its sales in 2013. This statement can be accessed here…

Company closed 2012 with sales of 92,000 units. GM India launched Sail UVA in Nov. 2012. 3 months later in February 2013 Sail Sedan came in markets and in May 2013 MPV model Enjoy was launched. Vikas Jain’s statement was based on expectation of sales jack up these three much awaited models would give. Company’s vice president P. Balendran also said in a media event that Sail Sedan is expected to contribute 48000 units in GMI annual sales for 2013. Also, Enjoy came in MPV segment which seemed to be developing as Sweet Spot. But, even after launch of these 3 models GMI’s sales came crashing and company closed 2013 with even lower mark at 86 ,000 units.  

In Feb. 2013 while at the launch of Sail Sedan BizdomAuto sought reaction of then MD Lowell Paddock and Director marketing Sourabh Vats regarding Vikas Jain’s guidance of doubling sales in 2013 in comparison to 2012. Response that came from Paddock underlined perception that GM is very casual in India. He said, “No it’s not our target. He (Vikas Jain) is not our official spokesperson and we disown his statement.”

These two instances and regular change in stance at GMI’s head honcho are enough to guide that GM is very casual in local as well as global markets.

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