Tata plans to expand network to smaller towns

Aside from gradually working on the way the brand is perceived, Tata also seems to be working on expanding its dealer network. And not just in the major cities, but also in smaller towns. With this move, Tata intends to cover on its lost ground in the domestic passenger car market. 

Talking about their expansion plan, Mayank Pareek, Tata Motors President told PTI, "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."

In the first half of the last fiscal when the overall industry reflected a growth of about 6 per cent, Tata Motors was on a decline of 19 per cent with regards to sales. And with an aggressive expansion strategy, Tata Motors intends to change this. Tata intends to have its presence in all 651 districts across the country and this expansion will commence with the addition of 200 outlets this year itself. On the product side of things, through these new outlets, Tata will not just focus on its new products but will also try and optimise sales of its older car models like the Indica and the Indigo. 

In the month of April, the passenger vehicles division of Tata Motors recorded overall sales of 10,230 units as opposed to 7,441 units sold in the same month last year, resulting in an overall growth of 37 per cent.