To strengthen presence in smaller markets

Mayur Shah
Ajita Shashidhar

Mumbai, Aug 1

Tata Motors's passenger car unit is all set for a large-scale expansion of its retail network in its passenger car business unit (PCBU).

The company plans to have 600 showrooms by 2008 from the existing 140.

The company, which took eight years to establish a chain of 140 dealerships across the country, now intends to add 460 dealerships within two years.

With the company's Rs 1 lakh car to hit the roads soon, and the growing demand for its utility vehicles in smaller markets, the company plans to strengthen its retail presence, especially in the smaller markets.

"We plan to sell a million vehicles, and to achieve this target our retail network has to be overhauled," said Mr R.J. Chinoy, Marketing Head, Utility Vehicles (PCBU).

The company would also be looking at newer retail formats such as setting up sales-cum-service outlets at petrol pumps.

Eventually, the company may look at retailing out of kirana stores.

"Our first and foremost priority is to spread our network across the length and breadth of the country."

In order to increase penetration, Tata Motors is also planning to offer easy finance schemes to consumers in smaller markets through sister companies such as Tata Motor Finance.

"Offering attractive finance schemes would be an integral part of our expansion strategy, because if we cannot do so there is no point advertising our product in these markets," said Mr Chinoy.

(This article was published in the Business Line print edition dated August 2, 2006)
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