Tuesday 13 June 2017

GM in talks with M&M to service its vehicles


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General Motors (GM) is in talks with Mahindra & Mahindra (M&M) to provide servicing of all GM vehicles currently running in India.

GM is in the process of carving out its dealership and service businesses between two of its major competitors - M&M and Maruti Suzuki. Last month, the automobile giant had announced its decision to pull out of the Indian market. However, GM will continue to use the Talegaon factory in Maharashtra for exports.

GM dealerships are attracting the attention of major market players including Maruti Suzuki, which plans to double the number of Nexa network outlets by 2020.

The agreement between M&M and GM could be a contract service deal under which M&M workshops and dealerships in India will service all GM vehicles at mutually agreed rates. GM will pay M&M a royalty for these services.

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