New Delhi, March 9 General Motors' aftermarket automotive products brand, ACDelco, a major American auto company, has re-entered 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 select aftermarket products, and is investing Rs 300 crore over the next three years in a battery production plant in Haryana.
"Initially, we will be dealing with lubricants and batteries, and then later on, 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, "But the first one or two-year plan is only restricted to lubricants and batteries."
When asked about business expectations, he said, "We will be building it up slowly. 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 start hitting around Rs 75 to Rs 100 crore (in revenue)."
Garg said the company has a manufacturing unit for lubricants in Hisar, Haryana, and a new unit for battery manufacturing is also coming up in the same location.
When asked about investment, he said that Rs 300 crore is being planned over the next three years for the battery plant, which will have a production capacity of 25,000 units per day once it is fully operational.
"The battery plant, which will also be located in Hisar, is expected to start operations by April 2026," he added.
Garg further said that the company has already invested Rs 180 crore in the lubricant plant at Hisar, which has a current capacity of 1 lakh litres per day.
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 the exit of General Motors from the country in 2017.
"After that, we have not sold anything in India as of now. Then last year, during this time, we signed a tripartite agreement between General Motors, Chevrolet Sales India Pvt Ltd (CSIPL) and Assurance Intl Ltd. So this is how it built up," he said on the re-entry of ACDelco in India.
Expressing confidence in making a strong comeback of the brand, Garg said, "As far as the aftermarket is concerned, it requires confidence, it requires networking, and it requires that a quality product is available."
"Now with the backing of the GM brand, although 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 to the brand," Garg said.
He also noted that General Motors vehicles are still plying on Indian roads, which will need support, and the brand will also strive to cater to the aftermarket requirements of vehicles of other manufacturers.
ACDelco will leverage Assurance Intl's pan-India network of around 260 distributors and roughly 20,000 to 25,000 retailers for the expansion, he said.