Daewoo Plans To Increase Stocks With Dealers

Daewoo Motors India Ltd (DMIL) is looking at a new way to beat the slack season, but the company's solution would need its dealers to dig deeper into their pockets.

The company is preparing its dealers to ramp up the stocks at their showrooms in order to offer a greater choice to the customers, which would in turn shorten the customers' waiting period and result in increased sales.

The company currently offers four variants of the Matiz, which come in seven different colours. The company now plans to showcase a majority of these 28 models to customers at the showrooms in a bid to cut short the waiting period for deliveries.

YC Kim, chief executive officer of DMIL, said, "We're improving stock levels at our dealerships. By doubling the stocks at our dealerships, we can offer the customer a better choice and make immediate deliveries."

However, the company's move could cost the dealers dear, as Daewoo Motors as a matter of policy does not offer any credit to the dealers. This means that the dealers will have to shell out the entire amount while taking delivery of the cars.

"Daewoo Motors does not give credit to dealers. Our objective is not to improve the cash flow situation of the company. The objective is to serve the customers faster. When you look at last year's performance, the average monthly sale in the first ten months was more than 4,000 cars. Now, it is around 2,200. Our dealers, in an overall assessment, have the financial ability to sell more than 4,000 cars per month. It is the implementation of improved sales and service quality that we are targeting," Kim added.