General Motors, the global automotive market player had recently announced its plan to quit the Indian market. To achieve the same, the company intends to enter into a strategic alliance with Mahindra & Mahindra, an established behemoth across the automotive sector in the Indian sub-continent.
As per authentic reports, GM has been trying to wind up its stock across the country. Clearing up the entire stock and pulling out of the business altogether is no mean task, say experts, owing to which GM planned to carve out a service and dealership business with top automotive giants. A high-grade official of General Motors was quoted saying that the company is looking out for a percentage based dealership with India’s most popular companies operating in the automotive sector, with the top ones being Mahindra & Mahindra and Maruti Suzuki.
General Motors’ strategy of establishing a service and dealership business with their automotive competitors will prove to be profitable for the organization over the years ahead, as per industry experts. The ground level approach of Mahindra & Mahindra and Maruti Suzuki in this case, is to play the role of fund raiser. This business tactic is slated to attract more customers, owing to the extensive availability of dealership and service centers in the country.
For clearing the stocks of the vehicles such as Chevrolet Cruze, Chevrolet Beat, and Trailblazer SUV, General Motors has made the aforementioned products available at a huge discounted price for the customers. As per a legal news snippet, GM is offering discounts ranging from INR 1 lakh to INR 4 lakh on specific vehicle segment. Under this strategic agreement, M&M is also expected to provide workshop services to GM vehicles. This alliance is likely to prove beneficial to Mahindra and Mahindra, as GM will be paying royalty for such services.
Apart from the vehicle sales, GM is continuing its research and manufacturing work in specific locations across the nation. General Motors is also looking forward to collecting more revenue via exports through India. GM has also shut down the automotive production plant in Halol in April 2017.
This move by GM is likely to generate lucrative avenues for the Indian automotive giants to dominate the regional business space. The dealership programs of GM have been attracting major industry players. Maruti Suzuki is also on board to favor this alliance, and is predicted to double the number of Nexa network outlets by 2020.
Dhananjay develops content for Market Size Forecasters. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted for a career in writing and now pens d...