Tata Motors To Begin Expansion Spree

Published: Tuesday, August 23, 2011, 18:15 [IST]

Tata Motors, the Indian carmaker has decided to go on a huge expansion spree of its dealerships and showrooms to boost sales. Tata Motors which reported its financial results for the first quarter has stated its sales of passenger cars had declined by 10.7 per cent while commercial vehicle sales continued to raise.

In a bid to boost car sales Tata Motors will increase the number of showrooms from 250 to 650 across the country by the end of this year. We had earlier reported that Tata was also planning to set up separate showrooms exclusively for the Nano small car.

Tata Motors Vice President Commercial R Ramakrishnan while speaking to reporters during the launch of the Aria crossover in Ahmedabad said: “The company started this year with dealership network of 250. By the end of this year, we would be adding 400 dealerships taking the total count to 650 dealer outlets. We are going to add 300 dealerships exclusively for Nano predominantly in tier-III markets (towns with population below two lakhs), by the end of this year."

Speaking about the Nano small car which has seen a significant drop in sales in July Mr Ramakrishnan said: “For Nano, we expect a lot of interest in tier-III and IV as well as rural markets... so considering various aspects we have to look at a network which can cater to this diverse market."

Tata Motors is trying to respond to specific market demands and will design its showrooms accordingly. Since demand for the carmaker's utility vehicles such as Safari, Venture and Safari are high in tier I and tier II cities, Tata will add 100 more dealerships for these models alone. For tier II cities and towns, the carmaker will concentrate on small cars and hatchbacks. Tata will also set up more showrooms in rural parts of India.

Article Published On: Friday, August 12, 2011, 12:07 [IST]

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