PS: It is a descriptive post. Suggest reading it entirely to understand the depth.
Well traffic is an overused and over abused word in Bangalore. It’s
been 3 years and am in love with the city. Good people, excellent weather,
happening night life, lazy brunches in cafés, it’s got everything you ask for.
But getting to all these places that is a task in itself. When you are told you
need to get somewhere in Bangalore a word starting with "F" comes to
your mind. Well its fear, absolute fear of getting stuck in the road for hours.
It's like Lord Kitchener pointing that finger at you in the famous WW-1 poster
saying "You" are responsible for this traffic.
Yesterday however was a revelation. When I woke up in the
morning to step out for work Google now told me it will take me 10 minutes less
than usual because of "less traffic". Wow! Indian festivals have that
impact. I immediately got into the Vettel mode and my humble Chevy beat
suddenly looked like a Red bull racing mean machine. A slight drizzle ensured
that the weather was at its best! The beat over the week has seen only the
first 3 gears during my commute and the 4 gear seemed like a candidate waiting for
his interview turn. The fifth gear, well was next to non-existent.
Today however I had decided to push her and beat the clock to
work. As always Google was right, traffic was less and the roads were free with
a slight drizzle just enough to keep the roads wet. I revved my engine and the
beat responded as if it’s been woken up after ages. I kept the engine on boil
between 2-3k rpm continuously and the little Chevy was upto the game. She was
charging well on the wet roads with a hint of under steer maybe because of the
wet road and the fact that I was pushing the car. We hit the ring road and for
the first time in ages hit a ton on that road and soon enough I spotted a speed
breaker which on normal days was obsolete because there was no speed and seemed
like a hump. I braked and expected a rally like jump over it, but was surprised
how the little beat managed to hold ground not lose traction on a significantly
wet road and yet come to a respectable 20 kmph within seconds and soon enough
to not mess with the speed breaker. I was amazed and impressed at this little
car's capability which I had never noticed on a normal day. I decided to test
it a little more and revved again after the speed breaker. The 1.2 litre motor responded
and I was able to hit a ton again. The mid-range is not that good but today I
got to explore the top end of the car which I have never experienced over the
past 3 years because I never got the chance. As these thoughts were flowing in
my head I clearly missed a huge puddle right at the exit of the flyover. The
beat hit the puddle at 90 and I hung on. Again yet another surprise, the Chevy
held on and didn't lose the straight line stability. It transferred the
feedback via the steering that I had messed up but didn't let the car get disturbed.
This was amazing because the puddle was deep enough to reach above my fog lamps
and I was sure that there would be some damage to the bumper. With a heavy
heart I got down to check the bumper and found it to be intact as if nothing
happened. Well when I was told in most of the meetings with the dealer about
the build quality of Beat which at that point pointless theory without
experience. Today I got to see it and experience it - and was amazed at what
this little Chevy pulled out.
I settled into a saner sort of driving and started thinking,
this is a company which pioneered in safety and introduced stuff like seat
belts which changed the course of automotive history and made cars for more
than 100 years, then why is it failing in India? I have read testimonials of
customers who have walked out of crashes unscarred because of Chevy's build
quality and safety and have seen customers give high regard to Chevy for the
way they are built and for the legacy. But I feel Chevy has ignored India as a market
when other players have focussed well on the sub-continent. Let’s see the
current scenario for the American Automaker –
 |
| Sales Trend - Chevrolet in India |
Chevy’s sales have dropped 48% in year 2014 when compared to year
2011. Based on current sales (31528 units till Oct’15) and forecast this year,
we expect GM to close at ~38000 units which will lead to a 66% drop vis-à-vis 2011!
But what has led to such decline for an Iconic Brand which had enviable status
in India at a particular time:
·
One of the oldest Automobile Companies in the world (as of date,
it is 104 years old!)
·
First Automobile Company to open an Assembly Plant in India (way
back in 1928!)
·
Chevy vehicles were widely featured in early Bollywood movies
(most famous were the Impala’s) and helped Chevrolet to gain a premium status
in Indian consumers mind
·
Chevy was a global marque and had immensely helped GM to remain
the No.1 Car Maker for 77 years in a row! (until Toyota snatched the top spot)
·
Chevrolet was the key to GM’s revival hopes in India and had
shown potential initially
·
Spark, Beat & Tavera were once known to be the benchmark in
their respective segments
·
One of the few automakers to have a product in every segment
(Spark – Entry level hatchback, Beat – Mid-hatchback, Sail UVA - premium hatch,
Sail NB – Sedan, Tavera & Enjoy – MUV, Cruze – premium Sedan, Captiva/now
Trailblazer – SUV)
·
Extensive network in India – Over 260 dealerships and similar number
of Workshops!
So with these many advantages, what went wrong?
Ø
Multiple failed products – Actually terming these products as
failures would be unfair, however GM pulling over these products from the
portfolio backfired (Opel Astra, Opel Corsa, Opel Corsa Sail, Chevrolet Aveo,
Chevrolet Aveo-UVA, Chevrolet Forester, Chevrolet Optra)
Ø
Negative Word of Mouth – Once the aforementioned products were stopped,
the existing owners faced trouble in servicing, availability of spares and
finally the resale value. Though the owners were extremely happy with the
performance of their cars, long-term ownership experience was jittery
Ø
No Unique Brand Philosophy – Though Chevy had an American DNA,
the products didn’t - Spark, Beat and Captiva were designed by Daewoo/GM Korea;
Sail and Enjoy were SAIC (GM China) offerings, Tavera was nothing but a
rebadged Isuzu!
Ø
Dismal Dealership Experience – The dealerships were not standard
across and the lacklustre sales attitude cost them dearly with the loss of
customer faith and trust. The dealer infrastructure as well in many cases were
not projecting the premium brand image that otherwise was required.
Ø
Improper Product Planning – Beat was an extremely promising
product when it was launched and performed impressively for quite some time.
However, no major updates on the brand made it lose steam in the Indian market
and sales went down bottom. The story remains the same for Tavera, Cruze, etc.
Also the manufacturer’s incapability of bringing India specific products led to
the downfall
Ø
High Maintenance & Serviceability Concerns – A frequent
concern shared by Chevy customers. Though Chevrolet did mega campaigning in the
name of Chevrolet Promise to highlight low maintenance; the customers weren’t
impressed.
Ø
Product Issues & Intermittent Recalls – Issues related to
brakes, clutch, etc were common in the new offerings. Also the recall of Sail
within first 6 months itself impacted the brand negatively. Tavera emission
goof up added to the despair.
Ø
Over Discounted Brand – The brand ads started looking like a grocery
shop ad with discounts on ALL its product range! The theme lost appeal on the
product characteristics and in a while meant demeaning in overall.
Ø
Low Survey Ratings – As per the latest 2015 JD Power Survey
report, Chevrolet stood last in Sales Satisfaction and 8th in
Service Satisfaction!
Recently GM has shown promise to invest even higher in India and
work towards increasing its Market Share in the sub-continent. So what will
work for this cult yet damaged brand –
§
1 Blockbuster Model – Indian consumer these days forgive very
easily. Learn something from your fellow American (Ford). Ecosport did the
magic initially and now they’ve brought Aspire & New Figo. That 1 crucial
mass product will prove to be the breakthrough to initiate the repair of Indian
Operations
§
Revamp Dealership Network – We appreciate the Automakers
decision to cut down dealers (though we are still unaware if the good dealers
are also lost). However, the dealer network needs to be supported to standardize
their infrastructure and workshops.
§
Connect with the Existing Customers – Chevy owns a handsome
number of customers already and has to make the connection much stronger. So an
over-dedicated Customer Care team and super-natural customer connect
initiatives are the need of the hour.
§
American DNA + Indian Usage – Right combination to win the
Indian Consumer. Though, this combination doesn’t mean to bring American Gas
Guzzlers to India (name Trailblazer). We need funky looking car, with acres of
space inside, run miles with great efficiency, have loads of features and costs
less as well.
§
Aggressive campaigning of Chevrolet Promise – Yes, the brand did
see some positivity when Late Karl Slym assured customers of low maintenance
when the program was launched. The campaign dwindled and neither Chevy nor
dealers seem interested. Can we have Mr. Arvind Saxena lead the charge and overhaul
the campaign?
If
only Chevy had paid more attention to India, and given India specific products
by using their vast know how of the industry, we would have seen a different
Chevrolet in India. Hope the revival that Mary Barra has been speaking about
has all this. Till then am happy with my little Chevy Beat but always concerned
as to what will happen if God forbid something goes wrong and I have to replace
some part. Till then good luck Chevy and hopefully you will get your act
straight and not fade away!!!
(Author's Profile: Manu Sasidharan. Am a hardcore petrol head, an auto enthusiast and an amateur designer. I have been in close touch with the industry for a long time and am abreast with the action in the automotive sphere. Driving is my passion and combined with a love for travelling makes me a nomad by nature. On the education front, I have done my Engg in Electrical and Electronics from Cochin university and my Management studies from Symbiosis Pune.)
