DL/MP/24-25/01 Apr 01, 2024
All Dealers,
Sub: Marketing Policy for 2024-25
Dear Sir,
At the outset, we acknowledge and appreciate the efforts and services rendered by you in ensuring
that the Tata Genuine Parts and allied products are made available in all of your workshops; ensuring
continuous utilization of end customers’ vehicles.
In order to enhance this serviceability and Parts penetration further, we are happy to offer rewards as
per different qualifying criteria and terms & conditions mentioned in the annexures to this letter.
We are sure that this policy will help in further increasing market penetration in your territory and
offering range of the products for all customer needs.
This policy is effective from 01.04.24 to 31.03.25
Salient features of the 2024-25 policy:
1. To address segment specific requirements, separate policies are announced for Parts, PG6 & DEF.
2. To support you in liquidation of slow & nonmoving inventory, an attractive IRS based incentive has
been continued.
3. To make it more suitable to individual dealers, two different options of IRS have been proposed.
4. To support you further, VOR offtake would continue to be considered for all target based incentive
benefits and hence it has been factored in maximum incentive potential.
We are confident that policy will help you in covering your costs and help in maintaining your business
operations profitable.
Happy Selling,
Yours Sincerely
Vikram Agrawal
(Senior General Manager- Spares & NVB, TMCV)
Attached-Annexure I-Policy, Annexure II-Terms & conditions
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Annexure I- PG1 to PG5 Policy
1. Increment in Serviceability
Option1
Offtake Target Incentive IRS
Budget 1.50% 1.25%
Stretch 2.00% 1.25%
Option2
Offtake Target Incentive IRS
Budget 0.75% 1.75%
Stretch 1.25% 1.75%
COB after Apr 2022
Offtake Target Incentive IRS
Budget 2.50% 0.00%
Stretch 3.00% 0.00%
The Budget & Stretch targets are in line with the sign off. The achievement and payment will
be on the NTA value only.
The dealers have to opt for any one of the options during sign-off stage. Once opted, it
cannot be changed for the entire financial year.
In case the dealer does not declare the selected option, by default option2 shall be allocated.
Inventory Relief Scheme (IRS) would be governed by the respective IRS policy document.
2. Process Excellence:
A. TOPS Billings
TOPS billing contribution in total offtake excluding DEF
Incentive
> = 70% 0.50%
60%-69.99% 0.25%
PG6 Policy:
Increment in Serviceability:
PG6 Overall Target Incentive
Offtake target Incentive
Budget 1.00%
Stretch 1.50%
The Budget & Stretch targets are in line with the sign off. The achievement and payment will
be on the NTA value only.
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DEF Policy:
Increment in Serviceability:
DEF Overall Target Incentive
Offtake target Incentive
Budget 1.00%
Stretch 1.50%
The Budget & Stretch targets are in line with the sign off. The achievement and payment will
be on the NTA value only.
Annexure II-Terms and conditions - Marketing Policy - 2024-25
1. NTA offtake value will be considered while arriving at the actual offtake value post all sales
returns.
2. All incentives are on NTA offtake value only and would be paid on Bi-Monthly target
achievements.
3. At the end of H1 & H2 as well as at the end of the year, if the dealer reaches higher slab on
cumulative basis, the differential benefits will be considered for the entire period as per
cumulative slab % for all target related incentives.
4. Sales made to all customer segments other than for WORKSHOP CONSUMPTION will be
deducted from the offtake value and the Incentive would be paid on the differential amount.
5. Any dealer if found in indulging in unethical practices will be dealt with very severely. TML
reserves the right to withhold the Incentive of any channel partner found violating the terms
of the agreement
6. Tata Motors Ltd reserves the right to change, amend, modify, suspend, continue or terminate
all or any part of the policy in part or full at any time without notice.
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