TVS ASL embraces technology and talent
Aftermarket is part of the automotive industry sector comprising the automotive services and parts businesses. It is estimated that there are about 1.2 billion vehicles on the road now. The numbers are growing. In the saturated developed country markets new vehicle purchase is primarily to replace the old ones and therefore, their sales growth is very marginal. In the major emerging markets like China and India the number of vehicles has been growing in double digits since a few years, barring some blips.
With every new model and variant, technical sophistication has been on the rise and the industry has been growing exponentially in the last two decades. The sophistication has been mainly in electronics and software, connected technologies and telematics. Improved quality and durability of the parts, which enhance both the life of the vehicle and parts, affect the aftermarket. New additions create new markets.
However, the automotive aftermarket industry is impacted by several major disruptions like digitisation, shifting competitive dynamics, and changing consumer preferences. The borderlines are constantly moving. The survival and success of the aftermarket industry is in getting the big data for vehicle service. It is not yet unequivocally the owners, own the data generated by the new vehicles. The vehicles, however, upload the data directly to their respective manufacturers. The aftermarket players are kept out of the game and lose the vehicle service business.
TVS Automobile Solutions Private Limited (TVS ASL), India’s leading player in the automotive aftermarket business, recently entered the twowheeler servicing business also. The company aims at providing innovative, technology-based global delivery model to connect directly with customers, garages and retailers. “For vehicles that are going out of warranty, the customer would either be part of the service network, where they are already in during the warranty period, or they would choose to go to an unorganised player. It can be anything. Be it a roadside garage or an organised dealership or a multi brand service centre. The key here is, on how you identify the need and how you position yourselves to attract customers. From our point of view, the one-stop shop solution is going to be a big attraction and value for money,” Natarajan Srinivasan, Chief ASL, told AutoComponentsIndia.
Multi brand service
Though mature, the US and the European markets are vastly different. The European market is very similar to Indian and it is mostly dependent on vehicle service providers. The US is a `do it yourself market’. People there buy components, assemble and do on their own.
“That is the way I see the distinction