Tata Motors & digital showrooms
VR and AR will change the automobile retail model in the coming years:
Digitalization is changing the automobile retail landscape in India. Automobile companies in India are focusing on using intelligent technology to provide effective services to customers. Automobile manufactures like Renault, Hyundai and Honda have accelerated their sales revenue range from 10% to 20% of the total from the digital mode. Maruti Suzuki has received 8% of sales of its Ignis model from the digital mode.
TML has added 200 outlets in the last 2 years. The company has 550 dealerships in India, and has plans to add 1500 in the next 3 years. It is now planning to introduce digital showrooms in India. Mayank Pareek, President Passenger Vehicles, Tata Motors said: “Tata Motors is doing is working with augmented and virtual reality makers so that we can show customers the entire car without actually showing the car. So, the future would be of asset light showrooms. We are planning to reach a place where a customer normally goes like malls, where you can provide a VR experience to the customers. We’ll bring the showrooms to the customers and VR and AR will help. Infact, if I close my eyes and look at 7-8 years down the line, well, the entire showroom can be on your phone.”
CUSTOMER EXPERIENCE & MARKETING
As per the JD power survey, “The Tata motors ranked 2 in the customer satisfaction Index with 888 points.” Vivek Srivatsa, Head of Marketing for Passenger Cars at Tata Motors speaks on the experimental marketing and its importance: “We are using experimental marketing to reach our customers, people can experience the product and decide for themselves if they want to buy it. The experimental marketing approach started with the Tiago hatchback that was launched in April last year and now selling 7000 units per month. It gives confidence that the Nexon will hit the sweet spot in customers’ minds. The fact that compact SUVS are the fastest growing segment in the country is yet another reason to feel optimistic.”
He further added: “We will be mainly focusing on the digital marketing channels like Facebook, Youtube and Instagram to target the young customers”
The Tata Motors Group global wholesales in August 2017, including Jaguar Land Rover, was at 94,210 nos., higher by 9%, over August 2016. Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in August 2017 was at 35,352 nos., higher by 17%, over August 2016. Global wholesales of all passenger vehicles in August 2017 was at 58,858 nos., higher by 5%, compared to August 2016. The company’s sales from exports was at 3887 nos. in September 2017, a decline of 27%, due to continued drop in TIV in Sri Lanka (by 54%) and Nepal (by 47%).
(L-R) Mayank Pareek, President Passenger Vehicles and Guenter Butschek, CEO & MD at Tata Motors standing near Nexon SUV