Auto companies to tie up with postal department to increase dealership

The Indian automobile sector has come up with an innovative way to increase the number of dealerships especially in rural areas. It has decided to leverage the postal department's nationwide network to increase the number of dealerships.

So far banks, insurance companies and financial institutions have entered into alliances with the postal department to increase their penetration.

As reported by Financial Express, MP Rajan, chief postmaster general of the Maharashtra circle said, "The department of posts is currently exploring business propositions whereby Tata Motors and TVS will be in a position to increase their car dealership in rural areas. These Companies have proposed to tap Tier-II and Tier-III cities by using the postal network."

"Passenger cars are no longer an urban phenomenon. An increasing number of auto Companies are aggressively making inroads into semi-urban and rural areas. For instance, in Tamil Nadu, an automobile company roped in the postal department to distribute pamphlets and dealership forms," added Rajan.

He also suggested that postmen, while on their rounds, could also carry out market surveys for Companies on household profiles with the help of questionnaires. The data collected would reveal the number of members in a particular family, their total income and loan repayment capacity.