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Tata Motors to double service outlets as new model sales raise hopes

In recent quarters, Tata Motors has achieved its highest sales in the passenger and commercial vehicle segment since November 2012 and June 2014, respectively

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Tata Motors is revamping its after-sales service dealerships in a big way, with plans to double them to over 1,500 in the next two years, as it looks to correct the poor perception of its after-sales services.

One of the prime reasons behind the enthusiasm of the Tata Motors's leadership to revamp the service is the good response to its recent launches in the passenger vehicle segment, which includes Tiago, Tigor, Hexa and Nexon.

Dinesh Bhasin, head customer service, Tata Motors passenger car business said that the ramp-up in the after-sales service workshops will be done in a gradual manner every month across the country.

Tata Motors had last August announced an 'acceleration' in company's turnaround strategy.

The homegrown salt-to-software conglomerate has just witnessed encouraging growth in sales and market share during the last few quarters. The company not only outpaced the industry average growth, but also achieved its highest sales in the passenger and commercial vehicle segment since November 2012 and June 2014, respectively.

Tata Motors is in the midst of a 'turnaround' plan and aiming to be among top three vehicle manufacturer in the country by 2019. The company has 'accelerated' its plans by introducing many new developments.

The development has been seen in the context as Tata Sons chairman N Chandrasekaran in May raising serious concerns over the falling market share of the company. The report had claimed that the market share for the CV segment has fallen to 44.4% from a high of 59.4% in FY 2011-12, while market share for PV declined to 5.2% from 13.1% in the same period.

"Overall, delays in new product launches, as well as lack of adequate responsiveness to the competitive environment and an unsustainable cost structure, have contributed to this performance," Chandrasekaran had said in the Tata Motors annual report.

DRIVING FAST

  • In recent quarters, Tata Motors has achieved its highest sales in the passenger and commercial vehicle segment since November 2012 and June 2014, respectively
     
  • Its models in the passenger vehicle segment, including Tiago, Tigor, Hexa and Nexon, have got good response
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