Tata Motors, in what seems to be an attempt to cover lost ground after the not-so-satisfactory sales figures of Zest and Bolt, has decided to boost up its dealership network in small towns. The home-grown automajor intends to open 200 new dealerships this year and also wants to focus on getting more sales from ageing models. The company is contemplating setup of mobile workshops to offer doorstep vehicle service for better convenience of buyers.
Mayank Pareek, Tata Motors President (Passenger Vehicles Business Unit), said, "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." The company would open 1 dealer outlet every day after July 2015. Mayank Pareek also confirmed that Tata is aiming to have a presence in all the 651 districts in the country. On achieving more sales more older models like Indica and Indigo, Pareek said, "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 a good brand equity in personal usage segment."
For those asking, Tata Motors registered a growth of 15 per cent in the second half of FY15, while the whole automobile industry grew up by a mere 5.5 percent. Pareek also spoke on this by saying, "This was happening not only because of (new models) Zest and Bolt, but our existing models were also churning. We have put in a lot of efforts to make the most out of our old models." When asked of new product launches this year, he said, "We need new products. This year, we will have at least two new products, if not more. We have a robust product plan till 2020. We know there are gaps in our portfolio such as compact SUV segment, which we are definitely going to fill some time in future."