Tata Motors Aims to Double Passenger Car Sales Network by 2020

Tata MotorsBSE 1.53 % plans to almost double its dealer network in the country by 2020, targeting rural areas and cities alike, as the company looks to claw back to a dominant position in the Indian passenger car market.

The company, which currently has around 500 touch points across the country, aims to add equal number of dealerships to expand its presence.

"India is a hugely diverse country. There are around 6.5 villages, 3,000 towns with a population of more than 50,000 people and over 3,800 tehsils. We are trying to go as much near to the customers," Tata Motor's President for passenger vehicle business Mayank Pareek told PTI.

So, the company is embarking on expansion of the network across the length and width of the country, he added.

"By 2020 the passenger car market will touch 5 million units per annum mark. It will double from the current 2.5 million market. So, looking at that we also need to at least double our network by then," Pareek said.

When asked about expansion in rural areas, Pareek said: "In rural areas we need to expand more as there is upsurge in the market. Aspirations of people are growing as roads are getting connected."

For Tata Motors, rural sales currently account for around 15 per cent of total sales while some other players are getting as much as 30 per cent of their sales from rural areas, he added.

"Also there is a huge affinity towards Tata Motors brand in the smaller towns. We could leverage on that," Pareek said.

Commenting on the new launches, Pareek said: "Indian car market is growing. Earlier there used to be just A and B segments but look now we have so many segments. So there will be demand and we would need to bolster the existing portfolio as well as enter new segments."

He said soon to be launched compact car 'Bolt' would ensure the company's "re-entry into the hatchback segment".

After getting a good response to its compact sedan Zest, the company is all set to launch Bolt in the near future.

When asked about plans for the entry level Tata Nano, Pareek said: "It is a relevant product for us and there are exciting possibilities." He, however, did not share further details. With government all set to bring in mandatory crash testing norms for passenger cars, Pareek said Tata Motors is ready to comply with the new norms.