Tata Motors to revitalise dealer network

Tata Motors to revitalise dealer network

Mumbai: Tata Motors Ltd, India’s third largest auto maker by sales, is looking at revitalising its dealer network to boost sales, chairman Ratan N. Tata said in the company’s 66th annual report.

“Initiatives are underway to revitalize the dealer network and improve market share," Tata said.

Overall growth in Asia have been declining during the year, including in the automobile sector, and both China and India are expected to post lower growth rates in 2011-12, according to Tata.

To expand volumes, Tata Motors plans to add new dealers and improve sales at existing ones, a company spokesman said.

Besides setting up dedicated sales outlets for its small Nano car, the company also plans to utilize some of the existing commercial vehicles outlets to sell passenger vehicles. “The idea is to judiciously use the presence as one company," the spokesman added.

Competition has intensified in the local market and sales of Tata Motors cars have been declining.

In three months ended 30 June, passenger vehicle sales of Tata Motors dropped 8.53% to 76,176 units from 77,858 units in the same period last year, according to industry lobby group Society of Indian Automobile Manufacturers.