Ashok Leyland introduced a digital platform to facilitate customers to stick with the company for service and spare parts, as the country's second largest truck maker targets a larger share of the Rs 60,000 crore after-sales automotive market.
The segment accounts for just 5 per cent, or Rs 1,000 crore, of the company's annual revenue of Rs 20,000 crore. It is aiming to quadruple this to Rs 4,000 crore in the next three to five years as it will also help offset the impact of economic cycles on the trucks sector. The digital platform alone, it expects, will bring in an incremental Rs 1,000 crore a year.
To keep the customers stay with the company, Ashok Leyland already promises to contact truckers within four hours of a breakdown and an up time of 48 hours — it will absorb the trucker’s losses beyond that timeframe. The digital platform, the company said, is yet another initiative to ensure that trucks are always running and delivering.
The company introduced four solutions — iAlert, ServiceMandi, E-diagnostics and Leykart. iAlert is a telematics technology that will help the customer track the vehicle and get vital information on the vehicles health in real time. If the vehicle needs attention, iAlert sends the alerts directly to the trucker’s mobile.
ServiceMandi connects the customer with rated and trained mechanics with pre-agreed rates. The company already has 3,000 mechanics enrolled under this. E-diagnostics ensures fast diagnostics and visual instruction for repair and Leykart ensures round the clock availability of genuine parts along with doorstep delivery.
Ashok Leyland Managing Director Vinod Dasari said a global player like PACCAR generates almost a third of its revenue and half the profit from the after-sales business. For Ashok Leyland, he said, there is a huge headroom to grow.
"We are extending the use of the digital medium to enhance our customer efficiency, performance and profitability through various means of anytime and anywhere support for their vehicles," added Dasari.
As much as 60-70 per cent of Ashok Leyland truck owners chose an outside brand for after-sales services and spare parts. In the life cycle of a truck, the owner spends about Rs 3 crore, but Ashok Leyland says its income from it as the manufacturer is just Rs 20 lakh. The aim of the company is to bring such customers back to its facilities and tap into the balance business potential as well.