As he takes over the reigns at General Motors India, Arvind Saxena certainly has experience on his side. And he’s going to have to use all of it to revive GM’s fortunes in this market. We sat down with him to get a sense of the days ahead.
You’ve been at GM India for a couple of months now, and you’ve had the chance to settle in. So, what does GM stand for in the Indian market today?
Well, GM stands for a couple of things. One, of course, is that it’s a global brand – and I would say that it’s a synonym for the automobile really. Secondly, it’s not new to India – it’s been here for ages, way back even in pre-Independence years. So, it’s clear that people associate the brand with good quality transport.
The two segments that have been doing relatively well despite the current market conditions are the compact SUV and sub-4m sedans. Any plans to enter these two segments?
Honestly, it wouldn’t be fair for me to comment on new products – especially keeping in mind that I’ve been here for only a very short while. But, I will say this, we do recognize that these are emerging segments and they are of considerable interest.
So, the Adra SUV concept we saw at the Auto Expo earlier this year, is that still a few years away at the moment?
To be honest, I don’t know whether it’s just a concept or whether it’ll get translated into commercial production. But, clearly, it reflects our recognition of that emerging segment.
What is your focus in terms of your current product lineup, or any new products that are planned for the near future?
I still have to go through the entire lineup and really experience it. I’m still in the process of understanding what lineups Chevrolet has worldwide, and what could be relevant for our market from there. So, I can’t tell you what is coming when – it’s too early for me at this stage.
What is your focus at the moment?
Right now, I think the number one challenge is that we’re in a market situation that is extremely difficult. And to make our business more viable is the big challenge for me at this point – which means clearly looking at our network efficiency, the sales numbers, and also how we can make our operation internally more efficient.
You’ve experienced different corporate cultures in India, having led teams at Maruti, Hyundai, Volkswagen, and now GM. Any strengths that you would like to bring in from cultures that you’ve already been a part of, or any weaknesses you would like to avoid?
Culturally, I think they are all very focused – they are all in the business of making and selling cars, and so they’re not very different. Yes, companies do have their own set of processes, but fundamentally I think everyone is quite focused on making the business more attractive. So, I don’t see any major difference, at least in the large companies that you’ve mentioned. They are very global, they are present across the world, and so they have very mature levels of operations and processes.
Do you think the Tavera issue is behind you?
The incident is truly behind us, and we’ve been very focused on getting the cars rectified. We’ve already completed a sizable number of cars. But, clearly, our current focus is to improve, and to really concentrate on quality. And there are some products where our quality levels are pretty good, so that’s what we’ll focus on – that’s the ultimate way of addressing the issue.
2014 has been a year where there have been a record number of recalls already for GM, does that affect the perception in India at all?
Today, customers are far more mature than they once were. And a recall is a very positive step in demonstrating your commitment to customers, and commitment to the brand. So, I don’t think that anyone takes it as a negative action anymore. I think it’s a very positive way of reinforcing your connect with the customer.
You’ve mentioned in the past that India is a very unique small car market, very different to other small car markets around the world. So, what is it specifically that the Indian customer wants?
I think the Indian customer is extremely value conscious. I won’t put it down to just being price conscious – they are value conscious! One of the reasons why this is so is because car ownership, even today, is a very aspirational thing in India. Cars are still a symbol of achieving something in our society, and that’s what makes a car so much more than just a form of transportation. So, the expectations of Indian consumers are very different from what they would be in other countries – especially developed countries. And so the Indian customer wants more-and-more from his car.
Do you think it would make sense for GM to bring in one of your halo cars – the Camaro for example – to India to build a bit of excitement to the brand?
Theoretically yes, but we also need to consider the practicality of doing so. Yes, it is one of the ways to increase brand appeal, but you need to look at the entire project – how will you service it, what parts would be needed, and whether or not it’s available in right-hand drive or not. And, of course, there need to be some fundamental aspects that meet market expectations – such as ground clearance, suspension tuning, etc. I certainly want to see what all GM has globally, and the next step would be to see how relevant it is for India.
What can you do to keep your dealers excited?
We need to make the overall business proposition attractive for our dealers, which doesn’t mean giving them higher margins or more money, but by making the overall business more attractive. This means looking at after-sales, used cars, parts, accessories – everything. We are working very closely with them.
In the current environment, the biggest challenge for dealers is to keep their business viable. And this is not just for our dealers, but it’s irrespective of brand, because of the downturn that we’ve seen for the past many months. We have to look at how to keep the excitement alive for our brand and product lineup. For instance, recently, we announced the first anniversary edition of the Enjoy. Some of these things will keep excitement in the brand alive, and at the same time provide an opportunity for the network to address their customers. We’ll continue to maintain a good life cycle for our products, and at the same time guide our dealers to make their business more attractive through after-sales, used cars, and the like. Of course, it’s good for our network – but it’s also good for our customers.
What does the future hold for GM in India?
Well, the future looks very bright for GM. In the short run, we need to keep our business proposition attractive, but in the long term we need bigger volumes and much better market share.
Where do you see the Indian market in the next five years? It’s been slow in the last few years, but yet there’s been growth up until the recent past.
The character of our market is that it’s always been very cyclic – I’ve seen it for many, many years now. But, yes, this downturn cycle has stayed much longer. So I only hope that the market has bottomed now, because I don’t think we can go any lower. And, long term, I have no doubt that India is a very attractive proposition – for any brand or any manufacturer, because this is a market that is consistently growing. The economy is growing, and the fundamentals are there.
We have a very young, aspiring population to whom cars are very attractive. So, there’s no doubt that India is a very attractive market. But, yes, we’ve had two very tough, challenging years that have provided setbacks. But, long term, there is no doubt about the Indian market’s prospects.
What is your biggest challenge in the short term?
In the short term, it would be to bring the momentum to the right places. Looking at costs, we need to see how we can make progress in that direction. The first is to create a movement in that direction, and to give it a push. Whatever we do, in the long term, we have to make the organization more efficient. That’s true for any business, and it’s especially important in challenging times like these. Whether it’s to do with internal efficiencies or network efficiencies, we need to identify those areas and be really roll out what we need to.
Is there a specific mandate from Detroit?
The goal is very clear – to make this business sustainable, and to keep it going in a positive direction. They recognize that India as a very strategically important market.
Do you have plans for exports from India?
Exports could certainly be an option, but I need to study it!
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