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Key Highlights:

1.Chevrolet cars have seen a 5% drop in the resale market

2.The prices of Chevrolet cars might drop as low as 20%

3. GM assures of after sales services to customers

General Motors (GM) made a major announcement on Thursday to exit from India's domestic sales market. The US car maker will now use its manufacturing facility in Talegaon to produce vehicles for export markets.

The decision by the company came after sustained losses in the domestic market and a very small market share (0.32% as on April 2017). A reason why the decision is not expected to have a huge impact on the Indian automobile market.

However, it is expected to have an impact on the resale market of Chevrolet cars, a brand under which GM operates in India.

Just a day after the announcement the prices of Chevrolet cars have seen a 5% drop in the resale market. The prices of the companies cars are further expected to drop as low as 20% in coming days.

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GM currently sells seven models in India, including Spark, Beat, Sail (sedan and hatchback), Cruze, Enjoy, Tavera and Trailblazer.

Kaher Kazim, MD and President of GM India, said that the company will end its domestic sales in India by December 31, 2017, but will continue to provide after sales service for a longer period.

“We will honor all our commitments to customers, this includes our after sales service agreements to them. We will continue to support all local stakeholders,” he said.

The company however did not give a timeline till when it will end it after sales service to customers.

Kazim further said that customers need not worry about the parts of the GM cars that they have sold in India as the parts will still be available to customers long after it stops domestic sales in India.

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