Chevrolet Cruze In

India
Business Case Study

Submitted by:

Aditya Mahwar
Kushal Vig
Punit Sethia
Saurabh Dugar
Vaibhav
 GENERAL MOTORS

 Founded – 16th September 1908

 Headquarters – Detroit, Michigan

 Led in global car sales for 77

consecutive years(1931-2007)

 Bankrupt on June 1,2009

 GENERAL MOTORS INDIA

 Based in Halol, Gujarat

 2008- 66,000 cars sold

 3.3% - Market share

 PRODUCT PORTFOLIO
 Chevrolet Spark

 Chevrolet Aveo U-VA

 Chevrolet Aveo

 Chevrolet Optra Magnum

 Chevrolet Captiva

 Chevrolet Tavera

 Chevrolet SRV
Passenger vehicles
 Background & Situation
analysis:
 Continuous decrease in sales, and inability to cater to
the lower segment of the market.
 GM made 70% of it’s own parts, which led to higher
operational costs.
 Inefficient production and testing process
 Lots of legacy methodologies carried out, which is
outdated in the current scenario
 Heavily invested and focused in the home market
rather than developing or under-developed economy
 Bankruptcy of GM
 Other Factors Leading to
GM Downfall
 Strong global competitors with lower operating &
legacy costs.
 GM intended to buy stakes of chrysler but that
also ultimately failed
 Spike in oil prices along with “the worst economic
downturn...since the Great Depression”
 The run-up in gasoline prices, plummeting
consumer confidence spelled the end by late
September 2008.
 Possible Solution
 Divest some brands but keep rich model portfolios
for remaining brands and reform the company’s
structure to provide each brand division with more
autonomy

 Restructuring in to a decentralized organization in

order to put more emphasis on individual brands
rather than regional divisions

 Market research, internal and external analysis

required in order to make this alternative
successful
 Particulars of Possible
Solution
 Benefits
 Focused resources on less brands
 Distinct target markets which define brand equity
 More capital to invest in R&D for each specific brand
 More autonomy to brands which decrease decision making time

 Feasibility of implementing the solution

– To divest some brands is a quite good strategy for GM, therefore
it will be able to cater to more market segments in proper way
 Future Targets

 10% market share by 2011

 Sell 2,00,000 cars by 2010

 Making GM India a key production & R&D base

CRUZE
 CRUZE

 Price LT- Rs 12,45,000

LS- Rs 10,99,000

 4 cylinder VCDi 16v SOHC 1991cc engine

 150ps , 327nm torque

 CRUZE

 Dynamic & aggressive styling

 Comfortable Interiors

 Class leading features

 Refinement & versatility

 CRUZE

 PEPS- passive entry passive start

 Cruise Control

 Rain sensing wipers

 Smart Screen
 COMPETITORS

SKODA LAURA

TOYOTA
HONDA CIVIC
COROLLA
 Cruze Civic Laura Corolla

Engine 2.0L Diesel 1.8L 1.9 Diesel 1.8L Diesel

Petrol
Power 148 bhp 125 bhp 105 bhp 132 bhp

Price 10.9/12.45 14.25 lakhs 10.5-14.25 lakhs

lakhs

Features

PEPS Yes No No No

Rain Yes No No No
sensing
wipers
Cruise Yes No No No
Control
Smart Yes No NO No
screen
HOW CRUZE WOULD HELP
GM INDIA

Change Consumer perception about GM products

Increase Brand Image & Brand Value

Provide a standard for future quality of GM vehicles

Help to Increase Market Share & Revenues

 Positive effects

 GM India has reported 50% growth in sales

 Sold 7,654 units in September 2009

 Chevrolet Spark sold 4,706 units ,double its usual

monthly sales
THANK YOU