Tata Motors is planning overhaul in large-scale of its sales network
Published Date | 2018 December 5
Tata Motors is planning overhaul in large-scale of their sales network all across the country which is expected to augment the growth of the company and the automotive industry of the country.India: Tata Motors which is a major company in the automotive industry is planning a large-scale overhaul of their sales network all across the country over the next one year as it is preparing to launch new products, which includes premium SUV Harrier. The company, which is planning to have all the products on just two platforms in future namely Omega and Alpha, at present, has around 790 dealerships all across the country. This expansion of their sales network is expected to escalate the growth of the company and the automotive industry as well. Tata Motors President Passenger Vehicles Business Unit Mayank Pareek said, “We acknowledge that our showrooms and workshops need complete overhauling and accordingly we have hired a global consulting agency to look into upgrading all our showrooms. The work on upgrading the showrooms starts from next month and would go on for at least one year. It would include bringing in new technologies enhancing ambience and workforce across the dealerships, he added. We have decided to have Wi-Fi in all the showrooms. There should be lounge where you can come and sit and not just necessarily buy a car.” According to BlueWeave Consulting, the company is in a process of upgrading its workshops and they are hiring more than 800 sales executives just for Harrier that is set for launch in January. Tata Motors is also looking forward to increasing double the number of their dealerships by the end of the financial year 2021-22, among which half of the number of dealerships will be based on virtual experience. Mr. Pareek said, “We plan to have 2,000 dealerships by 2021-22 and these will not be all brick and mortar (showrooms). We are going to use digital technology especially with 4G and 5G, which is expected to come. It is possible to utilise augmented reality and virtual reality platforms to create showrooms experience.” Since the Indian market is maturing rapidly all the new cars that will be brought in are going to be electric ready. At present, there are four models of cars namely Tigor, Zest, Tiago and Bolt which have been designed with the capability that allows them to be transformed into electric vehicle. Thus, with the expansion and up gradation of the Tata Motors sales network there will be a growth in the automotive sector as well as the electric vehicle market. According to the report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market, By Propulsion, By Vehicle Type, By Component Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2024”, the global electric commercial vehicle is projected to grow over a CAGR of 12% during the forecast period of 2018-2024 by value. The market is expected to reach around USD 149,316 Million by 2024. The demand for electric vehicles and charging station is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. In addition, the trend of reduction in vehicular emission due to stringent rules & regulations in several countries and growth of public charging infrastructure in China, India, and the other developed countries are fuelling the market growth. According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Charging Station Market, By Product Type, By Installation Type, By Suppliers Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the growth is attributed to an increased deployment of charging stations at public places such as shopping malls, commercial buildings, airports, and restaurants. The convenience of being able to use an EV charger while shopping or during office hours is expected to boost the adoption of electric vehicles. Furthermore, government offerings, such as tax credits, on the installation of publicly accessible stations are expected to boost the market. According to the report by BlueWeave Consulting on “Global Electric vehicle Battery Market, By Battery Type, By Vehicle Technology, By Vehicle Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the global electric vehicle battery is projected to grow over a CAGR of 19.04% during the forecast period. The growing demand for Electric Vehicles (EVs) is primarily responsible for the aggressive growth of EV batteries. The sales of electric vehicles have increased due to the increasing government support in the form of tax credits and lucrative subsidies and consumer awareness of the usage and benefits of these vehicles. Moreover, huge investments by major players to set up EV battery plants are expected to further drive the market. According to recent report by BlueWeave Consulting on “Global Automotive Plastic, By Products, By Application, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, This growth is driven by a number of reasons such as, growing demand for light weight vehicles among automotive manufacturers, high investment on electric vehicles coupled with easy availability of automotive plastic via stores & e-commerce channels etc. Further, government aim to develop increase the manufacturing sector across the globe will boost the demand for automotive plastic industry.