Thursday, 7 July 2011

Tata Motors to sell cars, CVs at same dealership



In a new marketing and distribution strategy , Tata Motors decided to use its commercial vehicle network to stock and sell selected passenger vehicle products particularly in smaller towns and cities not covered by passenger vehicle dealerships . Similarly , selected passenger vehicle dealerships will also stock and sell relevant commercial vehicle products in markets not covered by the commercial vehicle network . That way , the company wants toovercomeitsfootprintlimitation both in the CV as well as passenger vehicle segments . 

The idea , said a source with knowledge of the development , is to leverage the company's strengths across the segments . "Tata Motors is one company so why not utilize its strengths in the two segments – commercial and passenger vehicles ?" said the source . Under the plan , commercial vehicle products like Magic and Winger will find a place in passenger vehicle dealerships in relevant markets . Similarly , passenger vehicle products like Nano , Sumo ,Grande and Venture will be sold through commercial vehicle dealerships in cities and towns that are not serviced by Tata Motors' passenger vehicle network . 

Tata Motors has 254 passenger vehicle dealerships handling 600 outlets countrywide .In CVs,ithas 200dealers running 1,000 outlets. Many of these outlets are exclusively for theAce,which provided much of the learning that went into the making of the Nano . "Clearly , the idea is to rideon thecompany's formidable distribution network in thesemiurban and rural markets to push sales of passenger vehicles that can also cater to non-urban demand ," said another source in the dealer network . When contacted , the Tata Motors spokesman refusedtoengage .

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