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Tata Motors eye rural markets

19 July, 2019

Throughout the automotive industry, the name Tata Motors resonates with trust and supreme technology. But more than this, we are known for our ability to provide cars that are based on the needs and desires of the Indian masses and our sprawling range of cars stand testimony to this. Over the years, we have managed to garner a recall value which surpasses that of our competitors. Similarly, ours is the first brand that comes to mind when one mentions commercial vehicles. Drawing from this success, today we wish to become a household name across the country in the passenger car segment. We are tapping into the potential of rural markets as the purchasing power and aspirations of people in these areas are increasing.

Imbued with a new design language, our passenger cars break away from traditional design to offer a fresh look that appeal to a younger audience. It is with this new design philosophy that we are looking to increase our presence in rural areas. We are looking to achieve this through a series of plans that involve the two-fold increase of our retail network, a well-chalked out digital strategy owing to the growing influence it has on potential buyers and product interventions.

At present, rural markets garner 35% of the total passenger vehicle sales through a network of 865 outlets. However, this will be increased to 2,000 outlets in the next three years as, at present, we are able to reach only 60% of the available domestic market. We are also pushing towards mobile showrooms, service vans and sales executives in rural areas.

Currently, we are in the process of identifying potential car buyers as there is no direct business model that will ensure our success. For this reason, we are approaching regional rural banks to fully comprehend the financial capabilities of a region. A few cues that are taken into consideration are farmers who own at least five acres of land or one that owns a tractor, or a shopkeeper who is also a local banker, lends live credit, and has his own stock of goods. Such individuals would have more spending power and can be converted into buyers. Another example of this can be rural areas which have over one lakh higher secondary government schools. In such regions, only 2 to 3 % of the teachers own cars. We wish to turn this around as we are confident that our products will be widely accepted by people.

We are positive that through our combined effort of pushing a new digital plan and increasing the number of retail outlets, we will be able to drive up sales in the passenger car segment probably even higher than that of the urban sales.

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