Dealership rejig to improve marketshare: Ratan Tata

Tata Motors posted record sales in both commercial vehicles and passenger vehicles during 2010-11. While it maintained the leadership position in the CV space with a 61 percent market share, it saw a decline in marketshare in the passenger vehicle business. “Initiatives are underway to revitalise the dealership network and improve market share”, says Ratan Tata in the annual report of the company 2010-11.

The initiatives include setting up exclusive retail networks to sell utility vehicles and the Nano. The company plans to set up a network of 80-100 dealers by end-2011-12 to sell its UV/SUV/crossover range (Sumo, Safari, Venture, Aria). The first outlet is expected to be operational in a month or so. Rajesh Nair, head-utility vehicles, Tata Motors. “The new network will focus only on selling the wide range of models in the UV/SUV segments that we have now”. Currently, Tata Motors has a sales network of 250 outlets.

The new strategy is part of Tata Motors’ strategy to restructure its retail network from full-range dealerships to product-specific dealerships. Another step under this strategy is to set up an exclusive network of around 300 dealers by end-2011-12 to sell the Nano.