Satinder Singh Bajwa, Chief Business Officer at Morris Garages India, shared in an exclusive interview with ETAuto, "In our next three-year roadmap, we are planning to add 200 additional touch points, which we expect will contribute about 20% to our sales volume. Out of this, 35-40% of the sales volume will come from EVs."
Currently, JSW MG Motor India operates approximately 400 touch points encompassing sales, service, and secondary outlets. Bajwa emphasized, "As of now, we have covered metros and Tier-I cities. Our strategy is to enhance our reach and penetration in Tier-II and Tier-III towns. We will be adding 35-37 new dealerships this year, but our broader expansion will occur through our existing dealer network. By the end of this calendar year, our total dealer channel will touch 100 partners."
Highlighting the company's absence in Tier-II and Tier-III markets, Bajwa noted that most competitors have independent dealerships. He illustrated this by stating, "For cities like Mathura, we can request Agra dealers to establish a small outlet. We are calling them 'Udaan' outlets, not sub-dealerships or sub-outlets."
Amit Kaushik, Managing Director at Urban Science, commented, "Small formats generally enhance efficiency because with limited investment, you can expand reach. Moreover, involving existing partners sends a positive signal to the investor community. Expanding into lower-tier markets improves customer convenience, which is advantageous for any automaker."
As part of its network strategy, the company plans to introduce new outlets under the names 'Xperia' and 'Udaan'. These outlets will not be branded but will serve as differentiation for the company.
Under the 'Xperia' initiative, MG Motor aims to enhance the visibility of its brand in larger markets through existing dealerships, displaying two to three cars. This initiative will also function as additional retail space to capture sales potential, primarily targeting urban areas, Tier-I, and Tier-II cities.
Meanwhile, under 'Udaan', MG Motor plans to expand with smaller-format stores displaying two cars, bringing after-sales services closer to customers. These outlets will primarily be located in rural areas, Tier-II, and Tier-III towns.
Bajwa added, "These will be low-cost format outlets, essentially featuring one or two bay workshops to be established in these towns."
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