June 8, is World Anti-Counterfeiting Day. Tata Motors, in association with SIAM, will roll out an Anti-Counterfeiting campaign tomorrow, across its dealerships in India.
Tata Motors’ Spare Parts business has been instrumental in elevating the company’s Customer Satisfaction Index over the years and Tata Motors’ Passenger Car Spare Parts have been benchmarked as ‘TOP’ (Tata Motors Original Parts) under its comprehensive Service package, since 2010, with a view to maximise customer satisfaction. With the launch of TOP showrooms, Tata Motors endeavours to ensure the promotion of original spares which in turn guarantees performance and reliability of its vehicles and further strengthen a long lasting customer relationship.
The company has devised a plan for promoting the usage of original parts in the market through its branded original parts called as ‘TOP’. This will ensure that the benefits of advanced technology are acquired by customers in totality in the form of safety, reliability, durability, economy and environmental protection.
Tata Motors will expand its distributor segment from the current 23 nos. to 27 nos. in FY 14. In addition, the authorised Retailer/Shoppe base would be further increased to 5,000 nos., from the current 3,500 nos. Tata Motors will also be enhancing its distribution warehouse network with development of a world-class warehousing facility at Santosh Nagar in Chakan (Pune). M/s DHL has been earmarked as the Logistics Service Provider for promoting a world-class logistics experience to all supply chain channel partners.
At present, local mechanics, who act as influencers in the market and are instrumental in promoting usage of original parts are being enrolled in Tata Motors’ Mechanics Loyalty Programme – TOP Rishta, with a count of over 3,800 nos.
Product training’s are conducted by distributors to ensure more than 3000 mechanics are trained on understanding Tata Motors’ products and usage of its original parts every year. Tata Motors promotes the development and usage of original kits for regular repair jobs such as engine overhauling, suspension repairs, periodic services, etc. More than 100 nos. of such kits are easily available off-the-shelf and promote economy in repairs to end user.
With the advent of Passenger Vehicle Business Unit in 1999-00 for promoting focused attention to passenger vehicle customers, Tata Motors Spare Parts business began its journey with a turnover of Rs 97 Cr, growing year-on-year and presently at more than Rs 1,100 Cr in terms of turnover. With a strong market presence of multiple regional warehouses, distributors across states and over 3,500 Authorised Retailers, Tata Motors Passenger Vehicle Business Unit, plans to maximize its market presence for original parts. The CAGR for the Passenger Vehicle Spare Parts Business has been 14% for last 5 years and Tata Motors endeavours to further grow at a CAGR of more than 18% in the next 5 years.
The automotive aftermarket is the secondary market which includes distribution, retailing, and servicing of vehicle parts, workshop tools/equipments, accessories, and so on, after the vehicle is sold to the consumer. According to ACMA, it is estimated that the total industry (service and spares) for after market is more than Rs 33,000 crore, out of which parts industry comprises of around Rs 25,000 crore and balance Rs 8000crore of service costs.
The Spare Parts Industry comprises of players as mentioned below:
(1) Component Suppliers- Mainly OEMs and OESs, Spurious Parts Manufacturers (Grey Market), Distributors/ Stockists/ Retailers, Authorised Dealers, Overseas Suppliers.
(2) Service Providers-Mainly Authorised Dealers, Multi-brand Workshops, Semi-organised service stations, unorganised service providers and roadside garages.
Parts which are volume and consumption driven and have low technology inputs are often duplicated. These are mainly – Air/ Oil/ Fuel Filters, Belts, Hoses, Ball Joints, Seals, Brake Pads, Gears, Bumpers, Rubber /Plastic Items such as bushes/ trims, Side/Rear View Mirrors, Fasteners, Tierods/ Tie members, Electrical Switches/ Horns, Lamps/ Bulbs/ Guages, Bearings, Fenders, Cylinder Head Gaskets, Cables, etc.
Availability of spurious parts is a big challenge to consumer safety as the fact is that over 50% of spares for all popular brands sold in the market are actually spurious and unreliable. The use of such spurious parts poses a safety risk to the consumers. It is also true that even today only about 30%-50% consumers go to authorised service centres after the third year and others opt for cheap and unreliable garages, instead exposing themselves and their families to safety risks.