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Tata Motors to go on dealership expansion spree

May 15, 2015, 02:22 PM IST by Pratheek Kunder
Tata  Motors to go on dealership expansion spree

Tata Motors will start focusing a lot on expanding its dealership reach in the country, starting from July this year. This is a part of the strategy to regain its lost ground in domestic passenger cars segment .

In order to record a double-digit sales growth this financial year, the company will add 200 showrooms this year alone, with a rate of almost one outlet per day. Tata Motors plans to have 1,500 outlets in the next five years. The company has figured out the only way to gain more shares is to enter smaller towns, with their older models. As per this strategy, Tata Motors plans to have a presence in 651 new districts. 

Over the last few months, the overall sales of the company have increased considerably due to the introduction of the Zest and the Bolt. The company also claims that the sales of their older models have also picked up owing to positive market sentiment. 

"We need to expand our network, we need to be able to reach to customers and not the other way round. We are present in 359 cities currently, which is hardly adequate. We would like to have 1,500 outlets in the next five years," said Mayank Pareek, president, passenger vehicle business unit, Tata Motors.

"Ours is such a big country and there is a market for all these models. We are not going to depend on just new models. Taxi phenomenon is only in the top 10-12 cities of India. When you go to smaller places, our cars have good brand equity in personal usage segment," he added.

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