TVS Automobile Solutions Ltd (TVSAL) plans an aggressive expansion with a goal of opening ‘one franchisee a day with a digital ecosystem flavour’ during the next fiscal as the leading automobile aftermarket player gears up for emerging growth curve post acquisition of Mahindra First Choice Services Ltd (MFCSL).
The company has successfully integrated MFCSL after all clearances and the latter is now a 100 per cent subsidiary. “With this integration, MyTVS brand is the only pan-India aftermarket multi-brand network of this scale and size — 650 franchisees in 270 towns,” said G Srinivasa Raghavan, Managing Director, TVSAL.
He said TVSAL will embark on a major network and technology expansion to accelerate growth. It plans to add one franchise a day and a minimum of 365 franchisees will be added in FY22. “With that expansion, we should be able to cross 1,000 franchises by the end of next fiscal. With that we should be the largest in this part of the world,” he added.
TVSAL services close to a million vehicles in its network and the proposed expansion will see the company servicing 2 million vehicles.
Meanwhile, the company is in the process of rolling out what it calls AI-driven super platform, which is aimed at bringing all stakeholders of automotive aftermarket from a fragmented structure into a single digital ecosystem.
The new platform will support all franchisees on four pillars. While there is a digital marketing part that will help drive more business, it will have a multi-brand diagnostic platform from both telematics and scanner integrated for the first time on the cloud. Earlier, the diagnostics was done either in the car or at the centre. Now it is on the cloud.
“This is first-of-its kind in India and we have done this for 44 car models. It is a cloud-based diagnostics platform which diagnoses the error and fault and gets the right solution,” said Raghavan.
Thirdly, TVSAL has also expanded its digital catalogue which has more than 10 million parts and provides the choice to customers and franchisees. This is completely networked through its 80 plus fulfillment centres. “So, we can deliver the parts between 2 hours to 24 hours across body and mechanical parts and consumables,” he added.
And lastly, the entire diagnostics is integrated with the digital ecosystem of marketplace. TVSAL has formed an ecosystem with tyre manufacturers, battery makers, paint companies and parts producers. We have moved from fault to repair and now to look at complete needs of the vehicle, while adding a convenience to customers, who can manage everything on the mobile app,” said Raghavan.
While consolidating its leadership in the segment, the ₹1,000-crore plus TVSAL is continuing to expand its pan-India presence, and aims to garner about 10 per cent share in the automotive aftermarket business in the next three years, up from 4-5 per cent now.