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Dealers shun Tata Green over uncertainty

Abhlshek Parekh lack of responsiveness on the part up was too quick for its dealers recent company release.
MUMBAI of the company in responding to comfort most of which are multi Market sources indicate
growing complaints regard- brand outlets. that some proportion of Tata

I f initial indications are any ing continued charge It launched batter- GY 'Green' batteries were out-
pointers, Tata GY is facing on the batteries, gen- ies with charge of sourced, under a contract
an uphill task of establish- eral ruggedness of 34, 38, 46, 55 and 75 manufacturing agreement.
ing itself in the aftermarket or the batteries under amperes, covering Battery manufacturers routinely
r~placement market for automo- different driving ter- most of the models source batteries from other man-
tive batteries. Eight months after rains and delayed in passenger car seg- ufacturers to test the market and
its rollout in the market, many replacement of defec- ment. It has around build up their brand in a partic-
of Tata GY's battery dealers are tive batteries, putting 600 direct dealers ular segment it plans to enter or
walking out of their dealership customers at incon- operating multi brand even during temporary spike in
agreement citing lack of coop- venience. Dealers are outlets and around demand for a particular brand
eration and even substandard also unhappy with 130 distributors man- or specific capacity battery. Tata
quality of batteries supplied by the the credit/pay- aging smaller dealers GY itself imports two-wheeler
the company. ment terms offered by in small towns and batteries from its joint venture
The problem is likely to be the company. rural areas. partner's Thailand unit.
compounded by the fact that When contacted, Tata AutoComp GY Established in 2006, Tata GY
Exide Industries continues to Head Marketing - Tata Batteries is a joint ven- offers batteries under the brand
be the main battery supplier to AutoComp GY, Rajeev Malik to gain the confidence of OE ture between Tata AutoComp name Tata Green Batteries to the .
passenger cars and commercial rubbished the accusations and customers. The company began Systems and GS Yuasa, Japan. It domestic market and its facil-
vehicles manufactured by Tata said that weeding out of dealers its innings with the launch of is planning to scale up produc- ity at Ranjangaon near Pune is
Motors to the extent of around and enrollment of new deal- six type of batteries and quick- tion at the Pune facility to one spread over 15 acres. The com-
90 percent, though it is no more ers is an ongoing process. Since ly ramped it up to around 24 million automotive batteries this pany is giving special emphasis
a single source supplier. the company is in the process varieties covering all applica- year, with provisions to .ramp up on retrieval and appropriate dis-
Manyofthesmallandmedium of building its brand and pres- tions within a span of six to to two million automotive bat- posal of used batteries through
volume dealers complain of the ence in the replacement market eight months. The pace of ramp teries by 2010-11, according to a organised smelters. Hi