Auto companies aggressively opening new dealerships

The automobile industry is facing several challenges at this point of time, including a slowdown in sales. In April, passenger vehicles sales dropped by 17.07%. This was a steepest decline in nearly 8 years, the biggest fall since October 2011. 

Also, in the current budget, the government made some major announcements for pushing electric mobility in India. While the Indian auto sector did not witness any dramatic changes in tax norms, Finance Minister Nirmala Sitharaman recommended reducing the GST rate on electric vehicles from the current 12% to 5% in order to push the sale of EVs in the country.

Despite all the challenges, Auto companies are aggressively opening new dealerships. This expansion is part of the companies plan to expand their network and reach, and come close to customers with their transportation offerings.

Recently, Toyota Kirloskar Motor has launched a new dealership in Himachal Pradesh at Kangra. This is the company’s 365th dealership in the country. Known as Sant Toyota, the dealership will cater to 3S (Sales, Service and Spares) requirements of the customer.

Ajay Kakkar, Dealer Principal, Sant Toyota, said, “It is indeed our privilege to partner with Toyota, one of the global pioneers in car manufacturing. We are grateful to Toyota Kirloskar Motor for confiding and partnering with us in their India journey. Affirming Toyota’s commitment, customers will experience the best-in-class purchasing and service offerings at our full-fledged facility. We are extremely delighted to bring Toyota’s global standard products and services to the people in the region, while we ensure the highest level of customer satisfaction and reinforce the reliable and dependable image of the brand.”

Similarly, another company, Piaggio Vehicles Pvt Ltd (PVPL) has expanded its dealership network in India with the opening of a new dealership facility in Chennai. 

Saju Nair, EVP & Head of the Commercial Vehicle Business, Piaggio India Pvt Ltd, stated, “We are happy to inaugurate our new dealership in Chennai today. We see a lot of potential in Chennai as far as our business is concerned. Over the period of the last couple of years, we have experienced tremendous growth for us in Chennai and hence we thought of strengthening our presence by inaugurating one more dealership. At Piaggio, our core philosophy is to provide path-breaking solutions in the last mile transportation segment and we are committed to providing best in class offerings to our customers.”

Malind Kapur, Sr. VP of Marketing, Piaggio Vehicles Pvt Ltd, added, “It is our endeavour to continue providing best in class offerings to our customers which are not only best in technology but also are most suited for higher earnings. Tamil Nadu is a strategic market for us and we are happy to increase our footprints in Chennai. With this new dealership in Chennai, we want to reach out to as many customers as possible. With new dealerships and touchpoints, we aim to increase our reach in various parts of the country to come close to customers with our last mile transportation offerings.”