Tata Motors tries to woo dealers by doubling margins to 5%

In a bid to retain its dealers from exiting, Tata Motors decided to double their margins from 2.5 to 5 percent. Sources told CNBC-TV18's Ronojoy Banerjee this could be the highest margin in the passenger vehicle (PV) industry.

It is believed that the move comes after dealers had been deserting the country’s largest automaker. Its largest dealer in Delhi, who contributed to almost 15 percent of the company’s overall business in Delhi-NCR region, quit from the dealership. This is in addition of three dealers in Mumbai and Delhi each having already moved out. Also read: Tata Motors to launch LCVs in Australia It was reported a couple of months back regarding how the overall slowdown had been taking a toll on the vendor community. The company’s spokesperson in a sense confirming the development, said that had been some churn in the overall dealership of the company, owing to the overall slowdown in the market. The spokesperson also said that the company has added new dealers. But they did not tell us how many new dealers were inducted. The company has also come up with a new dealer policy called the 'Horizon Next'. It is in an attempt to forge a tighter relationship. Currently, things do not look good for Tata Motors.