Tata Motors to wind up a retail business with Concorde

Concorde is a Tata’s auto retail business that provides service, sales and spare parts for Tata motor passenger cars. It was established in the late ’90s in the partnership with Jardine Matheson’s Jardine Motors.

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Over the years the Concorde Retail is losing business and money. The main reason for the loss is the high costs and low volumes.

The Loss | Concorde

With time the retail company Concorde has lost most of its business. The main reasons were the low volume of sales and the high costs of the services.

• The company has reported combines losses crossing ₹366 Cr which has effected the brand to its roots.
• Although the company had 34 showrooms, 17 workshops, and 2,200+ employees working there but now it has sold most of its outlets. Only a couple of outlets are still working until the next financial year.
• Concorde has decided to shut and wind up the retail outsets before the next financial year.

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 Tata Motors on wind up

• The spokesperson at Tata before winding up says that through the dates Concorde has achieved all the goals even some more goals for which it was planned.
• They also added shutting Concorde will give Tata the freedom to plan and develop more about the core and important areas of the automobile industry.
• This would help tata increasing the tata business as they are doing really well currently.

The Downfall | Concorde

• Tata, Concorde’s parent company has done a lot of hard work and put effort into getting revenue and making the business a big empire.
• The annual growth was estimated to be around 12% to ₹1,215 Cr between the Financial year 2014 to 2019.
• But the past 7 years were not fairing well for the company and it faced a tremendous loss in those years.
• Concorde did a business of about ₹939 Cr but the profits shared were just ₹0.70 Cr which is way less than that what there were expecting.

The closing of Tata’s retail company could offer other dealers more profits and business which will complement their shares. The company also added that this will not affect Tata’s financials. It is expected Tata will do even better now.