The Hindu Business Line : Toyota, Honda Siel to expand sales network

Toyota Kirloskar Motors has decided to increase its dealership outlets from 57 to 100 retail 3S (sales, service and spare parts) facilities by 2008 to coincide with its plans to make small cars. The company has also decided to set up 1S (only sales) outlets and dry runs on 1S facilities are already on at leading dealer outlets in New Delhi (Galaxy Toyota) and Chennai (Lanson Toyota).

Spare parts to be sourced by the two depots are located strategically at Manesar (near New Delhi) and Bangalore. The Manesar depot, catering to the north and eastern regions, has been operational since 2005 while the Bangalore outfit, servicing the south and west, got ready in August.

In tandem, Honda Siel Cars India, has decided to increase its sales network from the existing 55 dealerships to 100 outlets by 2008. It has dealerships in metros and Tier I cities (Ahmedabad, Jaipur, Chandigarh, Ludhiana Surat, Kochi, etc) and will now focus on Tier II cities (Jammu, Hubli, Jamshedpur, Jodhpur, etc) to service a production plan to make one lakh medium sized luxury vehicles apart from small cars. The company has set up additional regional sales office in Mumbai and Chennai. Its existing offices in Greater Noida and New Delhi are currently looking after the north and east.

Toyota and Honda have taken nine and 11 years to have a chain of 57 and 55 dealerships respectively. Analysts believe it is a tough call though not as difficult as the initiative of Tata Motors to scale up to 600 outlets from the existing 140 dealerships by 2008.