Is GM India In Trouble? Dealers Could Move Court Against Carmaker

General Motors recently pulled out of the Indian market, while the carmaker still manufactures vehicles, but for export purposes only. The company is offering hefty discounts for its vehicles, while GM has nearly 2000 cars at dealerships across India and 800 more in stock with the company.

To liquidate assets, GM India is offering almost 30 percent discounts on vehicles. The carmaker has assured compensation to dealers for losses, on a condition that all cars, including the ones with the company, are sold.

General Motors has stated that 10 percent of the compensation amount will be credited to dealers within seven days, while 30 percent will be given if sellers achieve 50 percent of wholesale targets by 20 June.

This is a difficult situation as GM struggled with sales while it was still operational in India. With news of the carmaker pulling out of the Indian market, customers are shying away from vehicles made by GM, making it difficult for dealers to sell cars.

GM, however, has said it will honour warranties, service, and spared for cars in India. The vehicles manufactured in the Talegaon plant will be solely exported.