TATA Nano is likely to be the biggest bonanza for its dealers, who are facing skidding passenger vehicle sales. In the past 24 hours, dealers’ phones haven’t stopped ringing with queries about the small wonder.
Tata Motors is giving final touches to its comprehensive distribution plans and has roped in dealers to set the ball rolling in 7-8 months.
For Yadur Kapur, owner of A-One Motors, it’s like going down memory lane. “It has generated as much as interest as Indica. The promise of Rs 1-lakh car has been fulfilled, and we are now waiting to hear from Tata Motors on how to distribute and sell these cars. While we are in negotiations, it is too early to decipher the broad contours of the new distribution system,” he said.
“I think it will change the landscape of the Indian passenger car market and distribution channels across dealerships,” said Federation of Automobile Dealers’ Association secretary-general Gulshan Ahuja.
“We are not clear about the pricing yet and, therefore, I can’t comment about dealer margins. However, it’s clear that it is going to be a volume game for Nano as far as distribution strategy goes. We are getting enquiries from all sorts of customers. Even customers who own premium cars such as Tata Safari want to buy it as a second car,” Mumbaibased dealership Fortune Motors’ MD Anil Behl said.
While dealers try to get a hang of the nuances of the distribution strategy, some are not worried about margins and believe the Nano would be a hit in India. “There was a huge gap between the price of a two-wheeler and an entry-level car in India. Nano would meet the demand of this consumer segment,” said Vasan Motors’ Dilip Shah.
Others agree that margins could become a sore point. “This car will generate huge volumes, but margins will be thin. We expect to deliver around 20 cars daily compared to 4-7 cars now,” said a Tata Motors dealer.
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