India: Tata Motors to exit car retail business Concorde Motors

Tata logos are seen at their flagship showroom before the announcement of their Q3 results in Mumbai February 14, 2013. REUTERS/Vivek Prakash/Files

Tata Motors Ltd (TML) is gradually exiting its passenger car retail business–Concorde Motors India Ltd–as part of its strategy to pare costs by moving out of non-core assets and businesses to navigate through the economic downturn in the country.

Concorde Motors, which has been a 100% subsidiary of Tata Motors since 3 July, 1999, reported a loss of ₹105.69 crore for FY19, while revenue was at ₹1,215.08 crore.

“We believe the original goals of setting up Concorde have been met and to enable and drive the next phase of growth, we will move out of the dealership business and focus our resources on our core areas,” Tata Motors said in a statement on Saturday.

“The operations of Concorde are being seamlessly transitioned to other dealer partners in the various cities that Concorde is present in thereby building significant scale to their business while our customers will continue to enjoy uninterrupted excellent service,”

Concorde Motors was established in 1997 and later became a wholly-owned subsidiary of Tata Motors to help with the carmaker’s entry into the passenger vehicle market.

“With improving product acceptance, brand salience and new product launches Tata Motors has become an attractive franchise for dealers and is able to attract independent parties to join as network partners and deliver excellent results,” the company said.

On the sidelines of the Delhi Auto Expo in February, Tata Motors’ managing director and chief executive Guenter Butschek had told Mint that the management is paring costs across several heads including non-core businesses, material costs and others to strengthen its financials and reduce debt.

“In Q3, we turned cash accretive despite the collapse of the medium and heavy commercial vehicle (MHCV) segment. This means we have our house in order on the costs and cash management side. But in order to improve our bottomline, the topline needs to shoot and this is largely dependent on the TIV or total industry volume,” Butschek had told Mint on 6 February.

For the quarter ended December 2019, the company delivered a free cash flow of ₹2,400 crore in its domestic business. “We managed a positive FCF (free cash flow) by correcting inventory and ensuring that the working capital is kept really tight,” P.B. Balaji, group chief financial officer, Tata Motors had told Mint on 30 January.

This article was first published on livemint.com.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.