General Motors was struggling with the sales in India, so Chevrolet decision to quit the Indian market did not come as a surprise. However, it was surprise to an extent since it has been announced after company unveiled a couple of cars last year at the AutoExpo, that looked like a shot in the arm.
Whatever may be the reason to discontinue, it’s certainly not good news for many who own the car from the brand or have just purchased one. So will the existing customers suffer because of this? We have answered some of the relevant questions for you.
Will I be able get my car serviced?
There’s no clear exit strategy announced by Chevrolet and we have been hearing two versions of it. According to Chevrolet, it’s been trying to ensure hassle free ownership for cars through the existing dealerships / service centres. Chevrolet has also promised to honour its commitments and existing warranties.
Also, according to some reports it’s in talks with Mahindra to provide support to the existing customers. Since dealers have not been compensated for the losses at the moment, in absence of a binding agreement, they may want to apply franchising for other brands and use the infrastructure for that purpose.
What about the resale value?
Upon discontinuation, sales of car model generally take a hit unless it’s been some sort of a niche favourite among the audience. Along with precarious after-sales support, resale value of cars is expected to nosedive. If you don’t find the right buyer, it’s better to use the car yourself as long as it works.
Should I still buy a New / Old car from Chevrolet?
We would advise you to resist unless you get a really great deal. Most dealers want to clear stock and you may be able to find some pretty great deals because of the same. It’s worth nothing that upkeep / spares may be an issue in the long run despite the promises made by Chevrolet.
What would happen to the existing dealers?
According to reports, Chevrolet’s exit is going to result in loss of 15,000 jobs and loss of around Rs 1000 Crore. In absence of adequate compensation to the existing dealers, most are expected to look at other major manufactures for franchising options.
Maruti, which aims to expand its dealership network, is also looking at prime properties which it can use for its own dealerships.
What about the upcoming launches that were planned?
Before Chevrolet decided to exit, it showcased a couple of cars that were planned to be launched in India. Chevrolet Beat Activ, a hatchback and Chevrolet Essentia, a compact sedan were two such cars that generated quite a lot of interest among buyers. Sadly, India won’t see any of those cars.
Has Chevrolet India operations been completely shut?
No, Chevrolet has now started using the Talegaon facility to manufacture cars from export markets in Latin America and in fact it shipped the first batch of cars a couple of weeks ago.
SAIC Motor Corp of China has reportedly signed a deal with GM and has acquired the Halol facility of the company. SAIC Motor Corp would use the facility for India operations.