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Carmakers flex dealer, service networks to drive growth beyond metros

Network scale seen as central to tapping smaller markets

Automakers, carmakers, auto industry
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Maruti Suzuki India, the country’s largest carmaker, continues to scale its multichannel retail and service model to stay close to customers across geographies

Anjali Singh Mumbai

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Indian passenger vehicle makers are accelerating the expansion of their sales and service networks as they look to deepen penetration beyond metro markets, support a rapidly growing vehicle parc — the total number of registered vehicles actively in use — and improve ownership experience amid sharper competition in 2026.
 
Maruti Suzuki India, the country’s largest carmaker, continues to scale its multichannel retail and service model to stay close to customers across geographies. As of December 2025, the company operated around 4,450 sales outlets across its Nexa, Arena, and Commercial channels, covering over 2,850 cities. Its service network is even broader, with more than 5,700 touchpoints across 2,764 cities.
 
The company plans to add 500 service workshops in 2025-26, underlining the growing role of aftersales access in purchase decisions, particularly in smaller towns and rural markets, where proximity and turnaround time play a decisive role.
 
Tata Motors Passenger Vehicles, which already runs one of the widest networks in the country, is also expanding both its sales and aftersales footprint to improve reach and service capacity. The company currently has over 1,600 sales touchpoints and more than 1,150 service outlets across 1,200 cities.
 
According to Amit Kamat, chief commercial officer (CCO), Tata Motors Passenger Vehicles, the expansion strategy focuses on entering new locations while strengthening support in existing markets as volumes rise. Over the past three years, Tata Motors has added more than 300 workshops across urban centres and rural markets, while upgrading infrastructure and technical wherewithal across its network.
 
“We are strengthening our sales and service network by expanding into locations where we are currently not present, while also supporting our existing customers by improving service for our growing base. Going forward, we will continue to multiply our service access points and reach deeper into growing markets,” Kamat said.
 
JSW MG Motor India, which operates over 550 sales and service touchpoints across more than 270 cities, is also prioritising consolidation and quality upgrades across its footprint. “In 2026, we will focus on strengthening our existing network to deliver better sales and aftersales experiences. This includes investing in operational efficiency, facility upgrades and empowering our dealership partners,” said Vinay Raina, CCO, JSW MG Motor India. The company is also open to exploring new avenues beyond its current retail model where business viability aligns.
 
Honda Cars India is similarly evaluating network expansion as part of its longer-term growth plans. The company currently operates through more than 300 touchpoints nationwide and plans to expand selectively across Tier-I, Tier-II, and Tier-III markets based on market potential, said Kunal Behl, vice-president (V-P), marketing and sales, Honda Cars India.
 
Industry executives say network reach will be central to supporting Honda’s product pipeline, which includes multiple new launches by 2030, alongside preparations for local electric vehicle (EV) production.
 
Across the industry, network expansion is increasingly being driven not only by new vehicle sales but also by the need to maintain service consistency, manage rising customer expectations, and support the shift to new technologies, including EVs, across a geographically spread market.
 
According to Srikumar Krishnamurthy, senior V-P and co-group head — corporate ratings, Icra, original equipment manufacturers (OEMs) in India have stepped up network expansion in recent years to widen market reach and tap incremental demand from both urban and rural markets.
 
“Beyond traditional dealerships, customers are increasingly being exposed to new-age, technology-enabled vehicle service providers positioning themselves as end-to-end automotive ecosystems, offering self-diagnostics, connected services, and emergency support alongside routine maintenance,” Krishnamurthy said.
 
He added that, apart from expanding geographical reach into underserved markets, OEMs are also partnering such service providers to reduce service lead times, improve customer value, and manage operating costs — making aftersales capability a key competitive lever in the years ahead. 
Newer pastures
 
  • Industry giants to open more service workshops, to boost aftersales access 
  • Aim to enter new locations while strengthening support in existing mkts as volumes rise
  • Firms to invest in operational efficiency, facility upgrades, and empowering dealers