General Motors returns to India, but without the cars

US-based auto giant bets on the $12 billion aftermarket as it takes a low-risk route back into the world’s third-largest car market

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Last Updated: Mar 09, 2026, 17:28 IST2 min
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At the relaunch event of GM's aftermarket brand ACDelco by GM India and Assurance Intl teams in New Delhi, March 9, 2026. Photo by Madhu Kapparath
At the relaunch event of GM's aftermarket brand ACDelc...
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In a Nutshell
  • General Motors returns to India with ACDelco aftermarket parts
  • Assurance International to produce ACDelco batteries and lubricants
  • GM targets India's $12 billion automotive aftermarket industry

Years after exiting India, General Motors is making a return of sorts to the world’s third-largest car market. The Detroit-based company isn’t bringing cars back to showrooms. Instead, it is targeting the less glamorous, but often more lucrative, business of automotive parts.

The automaker on Monday relaunched its global aftermarket brand ACDelco in India through a licensing partnership with Assurance International Limited.

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Under the agreement, Assurance will manufacture and distribute ACDelco-branded batteries and lubricants for the Indian market.

General Motors used to sell its Chevrolet brand of cars in India but exited the country in 2017 after failing to capture a decent market share even after years of operations. After the exit, ACDelco also shut its operations in India in 2020.

The fresh move taps into the booming repair and replacement ecosystem rather than competing in the crowded car market in India.

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India’s vehicle parc—the total number of vehicles on the road—has surged past 300 million, creating a sprawling aftermarket industry that analysts estimate is worth more than $12 billion annually and is expanding steadily as cars and two-wheelers age.

For global automakers that have retreated from local manufacturing, the aftermarket offers steady margins without the heavy capital expenditure required to build cars.

ACDelco products will initially include automotive batteries and high-performance lubricants for passenger and commercial vehicles, manufactured locally at facilities operated by Assurance in Hisar, Haryana.

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The company has already invested about Rs 180 crore in a lubricant blending and packaging plant with a capacity of 1 lakh litres per day. A battery manufacturing unit—planned with an investment of roughly Rs 300 crore over three years—is expected to begin production by April this year and eventually reach a capacity of about 25,000 units per day.

Local manufacturing is intended to keep prices competitive while leveraging the global brand recognition of ACDelco, executives said.

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“This partnership combines ACDelco’s global legacy in automotive aftermarket solutions with Assurance International’s manufacturing expertise and distribution capabilities,” Managing Director Rakesh Sharma said at the launch.

Mahesh Ravindran, India country lead for commercial operations at Chevrolet Sales India, said the relaunch aligns with GM’s global strategy of expanding its aftermarket footprint through local partnerships.

GM’s India story

The company operated two manufacturing plants before deciding to halt domestic sales in 2017 amid mounting losses and intense competition. Its Chevrolet brand exited showrooms, though the company continued with limited operations to support existing customers and export vehicles.

The aftermarket route allows GM to remain connected to India’s fleet of Chevrolet vehicles while also targeting the broader multi-brand repair market.

ACDelco—one of GM’s oldest brands—already operates in more than 100 countries, selling replacement parts ranging from batteries and brake components to filters and engine oils.

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First Published: Mar 09, 2026, 18:19

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Himani is an Associate Editor at Forbes India where she writes about startups shaking things up, legacy firms seeking fresh grounds, and sectors in the middle of big transformations. Always curious ab
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