New Delhi, March 9 General Motors' aftermarket automotive products brand, ACDelco, a major American auto manufacturer, has returned to the Indian market on Monday through a licensing agreement with Assurance Intl Ltd.
Under the agreement, Assurance Intl Ltd will be the official licensee for ACDelco in India, responsible for manufacturing, marketing, and distribution of selected aftermarket products.
"Initially, we will be dealing with lubricants and batteries, and then later, we plan to expand into filters and possibly other product ranges as well," Nilesh Garg, Chief Business & Growth Officer of Assurance Intl Ltd, told
Speaking on the sidelines of the brand relaunch, he added, "However, the initial one or two-year plan is limited to lubricants and batteries."
When asked about business expectations, he said, "We will be building it up gradually. We want to build it up over a period of time. Our expectation is that over a period of three to four years, it should reach around Rs 75 to Rs 100 crore (in revenue)."
Garg said the company has two manufacturing facilities in Hisar, Haryana, one for manufacturing batteries and another for lubricants.
ACDelco products include a range of items such as lubricants, batteries, brake pads, and filters, among others.
Pratik Sharma, National Manager - Network Development at Chevrolet Sales India Pvt Ltd (CSIPL), said that in 2020, ACDelco operations were closed down in India, following General Motors' exit from the country in 2017.
"After that, we have not sold anything in India. Last year, during this time, we signed a tripartite agreement between General Motors, Chevrolet Sales India Pvt Ltd (CSIPL), and Assurance Intl Ltd. This is how it has been built up," he said on the re-entry of ACDelco in India.
Expressing confidence in the brand's strong comeback, Garg said that for aftermarket products, it requires confidence, networking, and a quality product. "Now, with the backing of the GM brand, even though they may not be present in India...with the technological background and support, we plan to take this product to create a new (experience) and support for the brand," Garg said.
He also noted that General Motors vehicles are still plying on Indian roads, which will require support, and the brand will also strive to cater to the aftermarket requirements of vehicles of other manufacturers.
Garg said that ACDelco will leverage Assurance Intl's pan-India network of around 260 distributors and approximately 20,000 to 25,000 retailers for expansion.
