The phenomenal growth Indian automobile industry has witnessed in recent years have not proved too beneficial for the dealers, who in today’s scenario are facing increasing pressures on their margins, courtesy to the rising overhead cost. Pertaining to this development, dealers in the Tata fold are demanding better share from vehicle sale operations and sales. Nano which was a dud for most of the dealers has shown sign of rejuvenation in recent months with a surge in sales. In order to capitalize on this upward trend and keeping new model line-up at all the Tata motors store rooms, there is a news doing the rounds that Tata is planning to couple its distribution platform for light trucks capable of carrying small cars and passenger cars.
This would result in bringing retailing of Tata products to a much larger customer base and will certainly help better margin deal for the dealers. Tata’s MUV the latest Tata Venture, reported the Economic Times, would now be retailed alongside Indigo and Indica by the end of this month. Beside these instances, products like the Xenon and the Winger will also be brought under the same roof.
Change has been the key mantra in every Tata endeavour. This change in marketing plan reflects the changing times. Tata Motors joint venture partner Fiat Auto is also facing a up hill task as the sales figure of its cars are not impressive. In addition to this models like the Indica have stagnated and Nano on the other hand is yet to bring in those promising volumes. The launch of Tata venture should be seen under such back drop.
During the early 90’s, seemingly passenger cars Tata Sierra and Tata Estate failed to bring in good volumes and later have to be retailed as a part of the truck division. In 1998, the launch of Indica ushered the Estate, Sierra, Sumo and the Safari to the passenger car division.