Balaji Cars Ltd, wheeling in success

Taking on the market when the chips were down through strategic change has made Balaji Cars Pvt Ltd script the Tata Nano's turn-around story. R Vijay Raghavan, group general manager, Balaji Cars Pvt Ltd, said, "When Nano hit a bump in sales, the change in marketing strategy turned the tide in our favour. We went about changing the perception in the consumer's mind that Nano is not in competition with the two-wheelers but stands on its own in the four-wheeler segment. It is not a cheap car but an economical car with guaranteed quality assurance. We cashed in on Nano's strengths that are its mileage and manoeuvrability. Thus, we facilitated the dream child of Ratan Tata to recapture the market. Currently we are number one in Nano sales in Mumbai and will only consolidate our position in the future."

From humble beginnings in 1996 when Balaji Cars started as a Tata Auto service station, they currently hold Ford, Tata Motors and Force One dealerships spread across multiple locations. "We don't sell cars; we sell service. We ensure that the journey of customers from buying to after-sales service is as smooth as possible. A satisfied customer brings in an average of nine customers and a disgruntled one takes away 15 through word-of -mouth advertising," said Raghavan while sharing his success formula.

"Additionally we give incentives to our customers as well as for our sales force for leads that generate a sale. We hire professionals and give equal emphasis on hiring women. Our staff undergoes frequent training to be in touch with the ground realities," explained Raghavan.  He said that the automobile industry does not always attract the best brains. Hence, frequent training is essential to bridge the gap. He wants to open up his own training facility that will groom professionals for the automobile retail industry.

Raghavan believes that a large part of his success is due to customer engagement and close interaction with the housing societies in the vicinity. The numerous events that take place are advertised door-to-door. During such events, potential customers get hands-on feel of the car they wish to purchase. He said the  company’s focus has been on service rather than sales. "Rather than have walk-in enquiries, we will give walk-in service. We can only facilitate the customers’ choice."

Eyeing the future and taking strength from their retail success, Balaji Cars Pvt Ltd will enter into bulk sales targeting the corporate sector. Also having reached the milestone in Mumbai they want to emerge as the market leader across India in Nano sales. They will continue to expand their base while maintaining their tradition of excellence.