Tata Motors to expand Ace network

Buoyed by the phenomenal success of its mini-truck, Ace, Tata Motors is now expanding its dealership network. The move is aimed at taking the sales and service points close to the target customer.

"Given the profile of customers for whom the Ace is meant, Tata Motors' objective is to provide a sales and service touchpoint in a radius of 50 km from the location of such customers," sources in Tata Motors said.

Ace was launched in the four southern states and in Maharashtra in a little over a year ago and is being taken to other states as well.

While the vehicle has been launched in most states in the rest of the country including Gujarat, Rajasthan, Madhya Pradesh, Bengal, Orissa and Bihar, the present attempt is at further penetrating the market where Ace is now well-established.

The company has started the process of identifying fresh dealers in 15 districts of Maharashtra including Pune, Ahmednagar, Satara, Sangli, Solapur in Western Maharashra, Beed and Osmanabad in Marathwada, Amravati, Vashim and Yavatmal in Vidarbha and Sindhudurg and Ratnagiri in Konkan.

Sources, however, did not specify the number of dealers they would be adding.

Observers feel that expansion of road network in the country coupled with increased activity in the manufacturing and retail segments has triggered a huge demand for commercial vehicles that are suitable for moving goods in a hub and spoke model.

Mahindra & Mahindra, another commercial vehicle manufacturer, recently launched two goods vehicles with the intention of filling the gaps that existed between large three-wheelers and big pick-ups.

Tata Motor sources however said the drive to expand dealerships was not in response to the launch of any vehicle by any other manufacturer. They also said the price of Ace, approximately Rs 2.43 lakh, had not been revised since June 2006.

Ace was launched as a unique option in the sub-1 tonne payload segment, largely served by three-wheelers. Mahindra's MaXX Maxi Truck, is also being projected as the 'entry level' four-wheeler cargo vehicle. MaXX Maxi Truck is priced at Rs 3.42 lakh.

Tata Motors presently has a capacity to manufacture 60,000 units of Ace. It is planning another plant in Uttaranchal to take the Ace capacity to 2 lakh. The company has so far sold 50,000 Ace vehicles as of date, sources said.