With prolonged remote working and several restrictions on vehicle movement, automotive dealers have been managing with a lot of challenges over the past one year. Rajesh Rajgor shares how Eicher CV dealer Fortpoint Automotive has been grappling with the new reality given the fact that the second wave has once again brought about a fresh economic slump
The pandemic-induced slowdown has put forth a challenging scenario for automobile dealerships across the world. Indian automobile dealerships, which witnessed vehicles migrating from BS-IV to BS-VI emission norms during the nationwide lockdown, also saw sales drop drastically. While the restart of operations post the unlocking did offer a glimmer of hope, the second wave has dampened the sentiments again. “It is a no-brainer that we are facing the most difficult times of our lives. Vehicle sales dropped last year in April and today the revival has been hampered again due to the ongoing restrictions on account of the second wave across the country,” says Bharat Jain, CEO and Director, Fortpoint Automotive.
“The worst affected is Mumbai where we operate and have seen monthly sales volume drop to 600-700 units from what was a peak of over 2,000 units per month during the pre-pandemic period,” he adds. For the uninitiated, Fortpoint Automotive has multiple brand dealerships across the city of Mumbai, notably, Hero Motors for two-wheelers, Maruti Suzuki for four-wheelers and Volvo-Eicher for commercial vehicles. “The company’s Managing Director and Group Head Sundeep Bafna is an automobile business entrepreneur who is very enthusiastic and has always been interested in automobile dealerships,” Jain informs.
“The family, which hails from Aurangabad, started the first Eicher dealership in 1993. This hands-on experience helped us in establishing a dealership in Mumbai in 2006. Including our head office in Mumbai, we have service branches in Bhiwandi, Navi Mumbai and Kalina. Our sales touch-points are located at Lalbagh, Bhiwandi, Borivali and Turbhe,” he adds. Explaining about Fortpoint Automotive’s unparalleled record of being a top Eicher dealer in the pre-pandemic days, Jain says, “Our Eicher dealership has a very good track record in Mumbai comprising close to 20% market share of the entire monthly sales volume in light and medium-duty trucks and buses.”
“When I took over as CEO of Fortpoint Automotive in 2014, the sales figure was close to 1,200-1,300 per year and our prime focus was on fleet operators working with pharmaceutical industries, construction segment, perishable goods manufacturers and school transport providers. Especially in 2018-2019 we touched 2,800 units in a year and thus continued our leadership pan-India till 2019-20. The results have been achieved with consistent efforts from the sales team, improved touch-points and acceptance of superior quality products from the OEM. This growth curve has propelled us to many recognitions, the finest being the best overall performance award from Eicher. For the last many years, we have continued to set benchmarks for sales and customer service for Eicher in our industry across India,” Jain states.
Partnership with OEM
Ever since their first partnership with Eicher in Aurangabad and thereafter in Mumbai, Fortpoint Automotive has had a cordial family relationship with the brand. The partnership has only grown over the years as Eicher launched new series in the light and medium-duty to medium and heavy commercial vehicle segment and buses. Elaborates Jain: “Each new product from Eicher has only bolstered our relationship with the company. Their commitment to product innovation, technology and spare parts availability is second to none. Even during the first wave of the pandemic they took cognizance of our difficulties regarding inventories in vehicle and spare parts’ availability. As a dealer, we always crave for some more support from OEMs and Eicher didn’t disappoint us thanks to constant communication and aid and backing provided to us as well as in training our workforce to keep them active.”
One of the most important aspects for a dealership is to maintain the right quantity of stocks and fulfill the OEM’s expectations with respect to sales. “In the pre-pandemic period, the BS-IV to BS-VI transition allowed dealers to keep a desired stock of different variants while in the post-pandemic period the norms were relaxed and we were given the liberty to maintain stocks as per the market scenario and its requirements. Additionally, the supply chain constraints have forced OEMs also to deliver as per our indents. We have all gotten accustomed to this new cycle and have accepted the fact that we have to support each other in this new world order,” Jain shares.
Managing Associates
Everyone is aware that a dealer employs a huge workforce and it is a capital-intensive business. Keeping on board sales personnel to servicemen to back-office staff and maintaining the facility requires huge funds. Fortpoint Automotive’s top management was in touch with every staff member during the critical period of the pandemic and provided support to calm down nerves and anxiety. While the dealerships restarted from scratch in May last year with 33% workforce, the core sales team were in touch with potential buyers and clients all throughout, using online channels and email.
“Our top management, including Sundeep Bafna, was motivated to make a difference and get back on our feet as soon as possible. We arranged transportation for workers who could travel to work as well as for financers who were hesitant to travel. The staff reciprocated in return by converting as many leads as possible. When they saw what the company was doing for them, they too contributed wholeheartedly. Without sounding pompous, whatever we did for the workforce and associates was quite essential as they are the foundation of the company on which the company stands tall,” asserts Jain.
With the restart of operations with quality service amid several precautions, Fortpoint Automotive undertook every possible task to make the overall experience safe for customers as well as the workforce. “Even now, from the reception of a vehicle until the vehicle is delivered after service, we ensure that the driver wears a mask, sanitizes the work environment and maintains social distancing. Also, the vehicle is sanitized and we follow all the standard SOPs to be adhered to as suggested by OEMs and the Government of India. We realise that the bar has now been raised for any company that wants to perform in this marketplace and hence we ensure a safe environment for customers as well as for our associates,” states Jain.
Looking Forward
The way ahead for dealerships is clear – that along with sales and service, dealerships will have to look at digitization as well other means to generate revenue. This reminds one of the saying, ‘When the going gets tough, the tough get going.’ “Be it reaching out to customers with online methods, facilitating finance or providing value-addition in terms of customisation of products, this is the time for dealership revenue restructuring. While we have been ensuring that any extra expenses are weaned out, we have to take care that every value chain contributes to the growth of the company. We are ready to serve customers with their servicing needs and are striving to improve ourselves to service our customers in a better manner,” concludes Jain.
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Each new product from Eicher has only bolstered our relationship with the company. Their commitment to product innovation, technology and spare parts availability is second to none. Even during the first wave of the pandemic they took cognizance of our difficulties regarding inventories in vehicle and spare parts’ availability. As a dealer, we always crave for some more support from OEMs and Eicher didn’t disappoint us thanks to constant communication and aid and backing provided to us as well as in training our workforce to keep them active.
– Bharat Jain, CEO and Director, Fortpoint Automotive.