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Old 23rd August 2014, 12:48   #1
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Default Balaji Cars (Kalyan) discontinuing Tata dealership. Reason = low sales

I visited Balaji Cars service center on 17th August to change our Nano wiper blade. When I asked them that why there are no cars on display in the showroom, the in charge gave me a shock by saying that they are discussing a possible walk away from TATA dealership.

I promptly asked for the reasons. The humble in charge told me that cars are not selling (I already know but didn't tell him that I am bhpian ). He told us the sad story of investing so many rupees into this dealership and running into losses.

After coming home I searched on internet for alternate service centers and found Krishna Motors, Dombivli MIDC. Called them up and they also confirmed the news that Balaji Cars will move away from TATA dealership.

I was planning to purchase Zest but looking at the situation of TATA service center like Balaji Cars, I will not dare to buy a TATA car. Balaji Cars gave me really good service and hence will miss them if they shut down TATA dealership.

Moderators this is my first thread after becoming a bhpian. Request you to please place it in the appropriate section.
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Old 23rd August 2014, 13:14   #2
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That's a news for me. I used to get my car my serviced from their Thane workshop. Then, at least the workshop used to be full of cars. Not sure of the situation now. But I think they are leaving at a wrong time when Tata is expected to garner significant numbers with Zest and Bolt, and upcoming compact SUV next year. I believe Tata will rope in new franchisee for the said region. Let's see, only time will tell
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Old 23rd August 2014, 13:16   #3
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Default re: Balaji Cars (Kalyan) discontinuing Tata dealership. Reason = low sales

This was bound to happen. When I got my TJet+ from them in 2012, the showroom had more Fiats on display than Tata(this is prior to them opening the Fiat Caffe in Thane).

It is my understanding that they are associated with Telco's commercial vehicle division. Will they move away from there too?


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Originally Posted by turbodude View Post
I visited Balaji Cars service center on 17th August to change our Nano wiper blade. When I asked them that why there are no cars on display in the showroom, the in charge gave me a shock by saying that they are discussing a possible walk away from TATA.
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Old 23rd August 2014, 16:52   #4
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Default Re: Balaji Cars (Kalyan) discontinuing Tata dealership. Reason = low sales

Balaji Thane Showroom also does not have a great footfall.

Infact, I had visited them long back and was amazed to see only a Xeta standing in the showroom where in the stable has capable cars like the Manza!!

Yet, for Tata showrooms who have suffered all these while, it would be better to just continue a few more months!!

Zest has been launched, and then Bolt and a possible Storme facelift is just round the corner.
"Achche Din Aane Waale Hain!!""
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Old 23rd August 2014, 18:42   #5
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Default Re: Balaji Cars (Kalyan) discontinuing Tata dealership. Reason = low sales

Although Zest is probably going to do well, it doesn't seem as if they're hitting Dzire like sales figures already.

IIRC Tata Motors was investing 50% for new dealer showrooms. Dunno how these guys missed being assisted by Tata Motors. Maybe they've sort of crossed a point of no return. And IF they've been financially imprudent, they would've taken a massive blow with financially strenuous cost of capital and increasing interest expenses piling up over the last 2 years.

Zest IS a competent product, and people will start believing & buying Tata Motors cars, but that image makeover may still take months. So, this is actually its understandable because with only Zest/Bolt doing decent numbers, for this dealer the rate of return probably won't be sufficient to turn profitable again even in years!

And then there's also competition from new launches of other brands.

P.S. : Its sad that old dealerships who've been with TATA Motors in trying times, would miss their growth to success.

Last edited by GTO : 25th August 2014 at 12:12. Reason: No acronyms for manufacturers please. Full name only
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Old 26th August 2014, 22:31   #6
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Default Re: Balaji Cars (Kalyan) discontinuing Tata dealership. Reason = low sales

Tata has sent a key with Times of India of 26 August. Its an open invitation to all to take a test drive of their new flagship sedan, the Zest.

Has anyone taken test drive after receiving the car key? Please share your experience, if you have. I can't take test drive this weekend because traveling from Kalyan to Chinchwad.
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