Q. What are your three core focus areas for your dealer partners in a post-COVID world?
In order to avoid stock buildup and blocking of working capital in the network and to supply vehicles according to market demand we have been focusing on efficient inventory management since last year. We continue to strengthen this process of demand forecasting with our dealer partners. Since the retail activity has been affected a lot since last month, we are discussing with our banking partners to consider relaxing the funding norms.
With COVID -19 since last year, we have been strengthening our digital initiatives for sales and service which have supported business continuity and ensured customer convenience. We continue to work closely with our dealer partners for enhancing our digital initiatives to supplement their on-ground services. The dealership staff is extensively trained to facilitate car purchase from home for our customers.
Q. What is the total number of dealership outlets you have right now — in terms of 3S, only sales, only service, please provide the breakup. What were their numbers in the FY20?
We currently have 331 facilities across India for sales and service. Majority of the outlets are 3S facilities spread across all major cities and towns in the country. Many of our dealer partners have set up extended outlets in smaller locations in their respective regions for wider reach.
With the enhanced digital platforms available not just on websites but even at the dealership facility like digital displays and simulators, size of the dealership will evolve on the basis of changing dynamics. Also, depending on the market requirement, the format of smaller outlets augmenting the reach and creating convenience for customers in faraway locations is likely to continue. The service facility with on-ground support like pick and drop, service camps etc is provided by the bigger 3S setups for those locations.
Note: All the data is an estimation based on the information received from various sources and extrapolated by ETAuto research.
Sales Outlet: Sales Outlet means all kinds of physical outlets/dealerships/touchpoints from where cars were sold.
Average Sales Revenue: This is based on the ballpark average selling price per unit multiplied by total units sold in a year divided by the number of outlets.
Average Selling Price Per Unit : This is an estimated price derived from the price range and the calculation done by ETAuto. It may differ slightly from the exact price.
As a fallout of the pandemic, most of the OEMs are seriously considering rationalization of investments in dealerships to make them leaner, smaller and affordable. Demand for this has been rising since 2019, after the Indian automobile industry and car market in particular began to fall, making many dealers bankrupt and forcing some of them to close their lavish and palatial outlets. The situation worsened with the pandemic and constrained the carmakers to review their retailing strategy. ETAuto analysed the situation in depth and also reached out to the carmakers to find out their plans and strategies. Based on findings Kia India tops the chart in per outlet revenue, while a detailed series on the ranking will be published starting today.
The Japanese carmaker seems to have risen like a phoenix from the ashes with the launch of its affordable compact SUV the new Magnite amassing over 50,000 bookings in the first three months of the launch. This marked the revival of the long-fledgling brand. Though ranked last at 12th in the pack, the carmaker has made progress in building lean and frugal retail setup. While sharing further retail strategy, Rakesh Srivastava, managing director, NMIPL, said that it has opened 20-plus asset-light showrooms in the Tier 1 cities. Edited excerpts:
The Japanese carmaker seems to have risen like a phoenix from the ashes with the launch of its affordable compact SUV the new Magnite amassing over 50,000 bookings in the first three months of the launch. This marked the revival of the long-fledgling brand. Though ranked last at 12th in the pack, the carmaker has made progress in building lean and frugal retail setup. While sharing further retail strategy, Rakesh Srivastava, managing director, NMIPL, said that it has opened 20-plus asset-light showrooms in the Tier 1 cities. Edited excerpts:
As a fallout of the pandemic, most of the OEMs are seriously considering rationalization of investments in dealerships to make them leaner, smaller and affordable. Demand for this has been rising since 2019, after the Indian automobile industry and car market in particular began to fall, making many dealers bankrupt and forcing some of them to close their lavish and palatial outlets. The situation worsened with the pandemic and constrained the carmakers to review their retailing strategy. ETAuto analysed the situation in depth and also reached out to the carmakers to find out their plans and strategies. Based on findings, Skoda Auto India is on the 9th spot in the chart in per outlet revenue.
