Chevrolet India exit: Uncertainty over 7,000 jobs, compensation to dealers raise concern

General Motors had dropped a bombshell on May 18 by announcing that Chevrolet would pull out of India this year. It came quite as a shock for Chevrolet dealers since they were waiting for the launch of the new Beat to reboot falling sales.

The American auto giant came to India way back in 1996, yet it failed to strike a chord with the Indian automobile industry. After two decades of operations, General Motors' market share in India is less than one percent.

Also read: Chevrolet India pull out: What will happen to existing customers?

Hence, it is a logical decision from the company to wind up its sales in India. However, GM's decision is expected to have a huge impact on the dealerships and employees. Though the company has said there will be due compensation and support for its dealers, the statement is not enough for anguished dealers.

General Motors India currently has over 120 outlets. Some of them have been dealers since the company started its operations. Some of them were Opel dealership until 2006 and then changed to Chevrolet showrooms. Each of them provide job to nearly 70 to 150 employees and in total nearly 10,000. With the brand's withdrawal by the end of 2017, nearly 7,000 employees fear to become jobless, reports Economic Times.

There were no sign of Chevrolet India winding up operations in the previous months. In fact, top GM India management were consistently talking with dealer partners about product launches. Thus, some of the dealers feel like GM has left them in the lurch with the announcement.

Chevrolet customers are also expected to have a tough time ahead. There are chances of many current service centers of Chevrolet moving to a new brand as the profitability will go down. Since 1994, GM has sold about 1 million cars in India of which about 5 lakh vehicles are still on road.

In the last three years, the company has sold about 5 lakh vehicles. At present, GM India assures seamless service and spares, but the company has not mentioned till when the service will continue. Recent Chevrolet customers may find servicing the car difficult if they plan to retain the vehicle for long.