As a part of their current strategy to move away from non-core businesses and focus on its mainstream business, Tata Motors is winding up its auto-retail business Concorde Motors.
For those who don’t know, Concorde motors was a retail outlet wholly owned subsidiary of Tata Motors. These were basically Tata outlets owned by Tata Motors themselves. It was set up in the late 90’s in partnership with Jardine Motors. The company has consecutively been in losses.
And the losses have been a lot. The company reported cumulative losses of over Rs. 360 crores. The company has sold almost all of its outlets except a few locations.The company had around 34 showrooms and 17 workshops which had a workforce of over 2,200 employees by the end of FY19.
This is happening at an interesting time when the market leader Maruti Suzuki has decided to invest over Rs 1,500 crore annually on acquiring its own real estate for dealership. This comes due to the high-cost structure in major cities which is dissuading many entrepreneurs from entering the auto retail business or take up any new opportunities.