Tata plans passenger cars, commercial vehicle dealership merger

Tata Motors is in a process to pen down a combined dealership for its commercial vehicles and passenger cars. The distribution network used for these two categories of vehicles will be combined in coming future with a view to enhance the sales of its products like Tata Xenon, Tata Venture and Tata Winger Platinum. The combined network will also increase the margins for the dealers by bringing variety in the outlets.

Owing to the improved December sales of most anticipated model, Tata Nano, the company is turning towards the betterment of its sales and a combined dealership network will make the availability of the car better and bigger. Moreover, multi utility vehicle like Tata Venture, which belongs to the Ace family will also benefit from this change in dealership structure. As per the company's executives, the end of this month will bring all the Tata products including Tata Nano, Tata Indigo and Tata Venture, in a single outlet.

As per Mumbai based Tata Motors passenger vehicle dealers, the outlets have started selling Tata Platinum along with the passenger vehicles which has helped them mark better margins and an extended network for the vehicles. The changing times has forced the company to change their marketing plan which will help both company and dealers for achieving better sales and capture bigger market. The increasing input cost has also become a topic of concern for the dealers and the combined dealership will prove a good solution to it.

As per a Delhi based Tata Motors dealer, the revised prices of Tata Motor's vehicles has affected the sales, cars like Tata Indica are not marking impressive sales and on the other hand Tata Nano is also not selling good volumes. He said that Fiat is also going through a tough time and in such a situation selling MUV like Tata venture can really prove beneficial to them. As for now there were separate dealership network for the commercial vehicles and passenger cars but with changing time the scenario is to change.

Going back to 1990, the stunning passenger vehicles like Tata Estate and Tata Sierra were not able to accelerate good demand in market as these were sold along with truck division but with the launch of Tata Indica back in 1998, company separated Tata Sumo, Tata Estate, Tata Safari and Tata Sierra by shifting them to passenger car segment. Last year the passenger vehicles flaunted a growth of 30 per cent by selling 2.48 lakh units when the overall growth market by Tata Motors was 28 per cent.

Read More on : Tata Venture 2013