Tata Motors To Target Rural Buyers For Faster Growth
Saar: The company wants to outgun itself this fiscal by aiming to grow faster than it did during the last term.
Tata Motors had a great 2017-18 fiscal year as it racked up a growth of 22 per cent over 2016-17 fiscal. In the current fiscal, however, the homegrown automaker has set itself a target of outgunning itself. That means it wants to grow faster this fiscal than it did during the last term. This was confirmed by S. N. Barman, vice president, sales, marketing and customer support, passenger vehicle business unit, Tata Motors to ETAuto.
According to the report, the automaker is aiming to fulfil its target by doing a lot more than just launching new/refreshed products. Tata Motors will target the rural market and younger customers as its main sales driver. And to ensure that the company’s presence is more visible, Tata Motors will add 100 new dealerships across the country. That will take the total up to 846.
Burman reportedly laid out some figures. In his own words:
“We are expecting to sell at least 75,000 cars in the villages and this we would be doing by targeting at least 75,000 villages while we also expect to touch at least 30,000 higher secondary schools in the rural areas. Tata Motors had a very fast paced growth of over 35 per cent in the non-metro or smaller cities compared to about 25 per cent rise in sales in the metros.”
Additionally, Tata Motors will be putting a lot more effort into marketing its products via various digital platforms. Burman sited that 70-80 per cent of Tata Motors buyers recorded that they first had a digital interaction with the product they wanted before ending up at the showroom.
During the last fiscal, Tata Motors passenger car segment declined by 4 per cent while the UV segment grew by a whopping 223 per cent. The company is currently cashing in on the Nexon SUV, which sits in the sub-4 metre category. Apart from expanding the Nexon’s variant list with the XZ variant, which was launched towards the end of March 2018, Tata Motors introduced the AMT variants of its popular SUV earlier this month.