Strategic touch points, customer centric offerings and coherent interaction is the key to Kamal Motors’ success thus far.
Story by: Rajesh Rajgor
Kamal Motors grew by 25 per cent in FY16. At a time when many commercial vehicle dealers are stressed, this could be termed as a sterling performance. Participating in the Tata Motors’ second phase of network expansion, which is poised to take the count of commercial vehicle dealerships to 4000 numbers by the end of FY17 from the existing 3000, Kamal Motors employed a two pronged strategy to achieve 25 per cent growth. First, it strategically invested in a 3S dealership on a national highway at Bhiwandi and Vasai respectively. This marked a graduation to selling and servicing a full range of Tata commercial vehicles. Second, it lay thrust on expanding its reach in the mofussil areas of Thane district, which led to good sales of all segments of buses and medium and heavy-duty trucks. An amount of risk was involved for certain. What helped however was the familiarity and experience of doing business in areas of Thane district. “It was in 2003-04 that we began opening up branches for small commercial vehicles in the far flung areas of Thane district like Boisar, Vasai and Ulhasnagar,” states Kamal Ailsinghani, Head, Kamal Motors. “Our Ulhasnagar branch caters to customers from Kalyan, Dombivali and Karjat. The touch points at Boisar, Vasai and Bhiwandi cater to the requirement of customers from North-West Mumbai,” he adds.
The introduction and subsequent growth of small commercial vehicles over the last decade and a half contributed handsomely to the growth of Kamal Motors. The role of small commercial vehicles as a last mile transportation solution meant that Kamal Motors would concentrate on areas in the city as well as on the periphery. As the reach of small commercial vehicles grew, Kamal Motors expanded its reach as well. This helped. From having a few outlets, Kamal Motors has come to have 11 touchpoints and the two above mentioned 3S outlets for full range of Tata CVs. “Starting as a Tata Authorised Service Station (TASS) we got our first dealership for commercial vehicles as a LCV dealer in 2002. The initial performance measurement was to sell 40 to 50 vehicles per month, but in a span of 18 months we surpassed the expectations of Tata Motors. We sold 500 vehicles per month” remarks Ailsinghani. The ability to sell more than expected numbers earned Kamal Motors a full range vehicle dealership in 2005 at Vapi and Navsari. The full CV range outlet at Vasai and Bhiwandi was awarded in 2013. Today, Kamal Motors ranks among the top ten dealers of Tata Motors’ Commercial Vehicle Business Unit in India. “Both the outlets in Gujarat and Maharashtra are 3S in nature, where we easily get to touch base with customers,” beams Ailsinghani. The Gujarat outlets are managed by Tejpal Ailsinghani under Tejpal Motors. Reasons Tejpal, “These branches allow us to touch base with customers in areas like Silvasa, Daman, Billimora and Chikhali.”
Coherent service
It is not just the infrastructure or sales that appeal the customers, it is the level of service that customer’s look for. To begin with, Kamal Motors has set a norm to attend to a vehicle within 90 minutes of its arrival at the outlet. “We are liable to give quick and pleasant service to our customers,” affirms Ailsinghani. An extension of this customer centric approach is the three Mobile Servicing Vans (MSV) Kamal Motors deploys. There is a roster for these MSVs across 11 outlets and the two 3S facilities in Thane district. “Customers can bring their vehicles to the outlets on the given day and get their problem sorted, reveals Venugopal Nair, Chief Executive Officer, Kamal Motors. He adds that small and mid-size transporters in and around the 11 outlets have liked the concept of MSVs. They have started picking up spare parts from the van at the time it travels to their locality.
Delving upon the role the two 3S dealerships will play, Nair says, new age vehicles will call for expert service, and owners would want to outsource all the service and maintenance. The concept of AMC will take off. This in turn will call for large modern servicing facilities that can accommodate a good number of CVs at any given time. “Customer is looking for a world-class product and an equally capable service support. Showroom experience is gaining prominence,” exclaims Nair. He adds, “As part of the showroom experience we deliver vehicles by performing a small ceremony to enhance the purchasing experience.”
Looking up to good times
During the peak period of FY2011-12, Kamal Motors sold seven to eight thousand vehicles. Ailsinghani expects FY2015-16 will see the numbers climb close to 5,500 vehicles. A ball park estimate in per centage for vehicles would be 40 per cent M&HCVs and 30 per cent SCVs and ICVs each. “It is to be noted that during the peak years of FY2011-12 it was 40 per cent SCVs and 30 per cent HCVs and ICVs respectively. Today, the saturation of SCVs in the market has led to a fall in the SCV numbers,” reveals Nair. Nair is of the opinion that once the manufacturing industry picks up pace SCV sales will also begin an upward movement. He avers, “A lot of small and medium scale enterprises provide support to manufacturers. Once momentum picks ups at SMEs, SCV sales will grow. It should be understood that manufacturers guarantee fixed business.” Nair explains further, that the rise and subsequent fall of SCVs has shifted the concept of FTU (First Time User) to M&HCVs. An availability of easy loan options make it easy for a medium or heavy CV buyer. “Today 85 per cent of the vehicle cost is financed with attractive finance schemes. We have several tie-ups with leading banks,” concludes Ailsinghani.
