Large automaker from India enters Cebu, eyes rural area

Tata Motors Limited Cebu president Franklyn Ong, (2nd from left) and Tata Motors Philippines president John Fernandez (right) lead the inauguration of the carmaker’s Cebu dealership branch on A.S. Fortuna St., Barangay Banilad, Mandaue City. Gov. Hilario Davide III (3rd from left) and Mandaue City Mayor Jonas Cortes (5th from left) graced the event. (CDN PHOTO/VANESSA CLAIRE LUCERO)

Tata Motors also plans to expand to south Cebu, Tacloban and Tarlac

Aiming to get a share of Cebu’s commercial vehicle market, Tata Motors Limited, one of the biggest automobile manufacturers in India, opened a dealership branch in Cebu, its seventh in the Philippines.

Tata Motors Cebu is the company’s second  dealership in the Visayas region,   next to Tata Motors Bohol, said Franklyn Ong, Tata Motors Cebu president and chief executive officer, during the branch’s official launching yesterday.

“We’re going to focus on commercial vehicles and diesel engines, so for business to business use. Kanang mga dili pang suroy-suroy (those that are not for leisure use),” Ong said.

He cited the need for delivery or service vehicles of small and medium-scale businesses.

Tata Motors Cebu is located along A.S. Fortuna St. in Barangay Banilad, Mandaue City.

John Fernandez, Tata Motors Philippines president added that in line with focusing on marketing commercial vehicles, the company is also looking to develop a dealership network in the countryside, rather than within the metro.

Based on company estimates, the underserved market in the countryside is around 40 percent.

“We’re moving to the countryside, or outside the cities. We’re looking at agricultural goods movers,” Fernandez said.

Stiff competition among car dealers in metropolitan cities was cited as reason for the move.

But the company is still confident in its market in Cebu.

“We are very confident here, particularly with the growth of businesses here in Cebu, and the number of multicabs plying the roads,” Fernandez said.

Ong added that based on company figures, car sales in Cebu grew by around 32 percent between 2014 and 2015.

He cited higher spending power and competitive prices as the main drivers for the growth, which is expected to continue this year.

Following this projection, Ong said he hoped that Tata Motors can share in the increase in car sales for both commercial and passenger vehicles.

Ong said the market is still “very big” for car ownership in Cebu, despite concerns of traffic due to the increasing car volume.

“In Cebu, it is correct that we lack a mass transport system. That is part of the problem (of traffic). But the other problem is the discipline of drivers, not so much on the number of vehicles running on the streets,” Ong said.

He said it’s important for our drivers to be disciplined.

Nationwide, Tata Motors plans to sell at least 2,000 commercial vehicle units this year.

Last year, the firm sold 2,012 units to a local government unit in Davao.

Expansion Plans

Aside from the new Cebu branch, the firm is also planning to open a Tata Service Center in the south of Cebu.

Ong said this is expected to open in the last quarter of the year.

The firm is also scheduled to open two more dealerships in Tacloban and Tarlac within the year.

They are also looking at possible expansion in Pampanga and Isabela in Luzon.

Currently, the company has five other branches in the country, three in Luzon (Quezon Avenue, Marcos Highway, and Cainta), and two in Mindanao (Cagayan de Oro and Davao).

The distributor of Tata Motors Limited in the Philippines is Pilipinas Taj Autogroup, Inc.