24 | AutoPartsAsia | AUGUST 2017
problem. The solution could be a
battery, a starter, cable or switch; LIS
wants to cover all that across vehicle
models. The difference between us
and any other parts manufacturer
is that we can give technical
information, support and service – a
complete solutions package.
It is very clear now in tractors; five
years ago almost nothing was there.
Today, for the same tractor we
provide starters, alternators, cables
and batteries. In the powertrain we
supply inline fuel injection pump,
high pressure pipe, overflow valve,
filter and filter assembly, lubes,
braces, gear oils and pump-set oils,
completing the whole spectrum. It
is benchmarked against the third or
fourth service that an OEM does. In
addition to parts, what was observed
was that tractors were an area
where little or no service was done
at the grassroots level – there is no
multi-brand tractor service. LIS has
recently launched LITS (Lucas India
Tractor Service) at the Adalat block
in Mirzapur near Varanasi. We will
soon be expanding in the markets
of UP, Haryana and Punjab, as that
is the tractor belt. It will offer an
alternative to the tractor owner from
always going to the OE as we will be
better than the roadside garage; it
is an option (the Lucas brand) that
he can choose. We have started in
UP as it has real potential for us to
provide this service, it is a State on
the move. We will soon expand to
15 in a couple of months, in UP and
Haryana. In three years we will cover
pan-India starting from the North
and East where the tractor belt is, to
include Rajasthan, MP, Bihar, coastal
AP (Nellore, Ongole, Vijayawada),
and Tamil Nadu (the Thanjavur
belt). It is a first attempt at multipoint
and multi-brand tractor service; the
start has been fairly positive. The
resistance comes from farmers and
garage owners who have not seen
anything like this before but they do
know that it carries the Lucas brand,
which gives it credibility. Two-wheeler
and tractors will definitely be the
markets where we will provide parts
and service.
Q: Does this work on the franchisee
model?A: Yes, for outside parties there will
be terms and conditions; training
will be ours. The value additions
we give to them are genuine parts,
fair price and technical support that
involves on-the-spot coaching. The
block market is such that in the
same family one person has a retail
counter, someone else deals with
implements, etc – they don’t like to be
associated with one brand. These are
the dynamics at play in the villages,
which work quite well.
Q: Will this be replicated for
passenger cars?A: For passenger cars the market
already has a few multi-brand
franchisees but there is clearly a gap.
In passenger cars vehicle diagnostics
become the need of the hour; unless
you have very strong diagnostic
tools it is going to be very difficult for
multi-brand service of cars. We need
to have a strong diagnostic partner,
not just a parts supplier, to succeed.
With Euro-6 coming in, if we look at a
five-year time frame, the car will first
have to go back to the OE points for
major work; the minor work will be
pure price competition.Q: Will this be a key driver for LIS to
get into car service?
A: That will be a factor to influence
LIS entering car service. As of now
there are no plans.
Q: In that case will CVs be the next
in your plans?
A: For HCV we have a national
advantage in having Delphi-TVS as a
partner as it has a range of common
rail equipment. We are already in the
market for common rail and have
invested in service dealers. As the
market share keeps growing, our
natural growth will go deeper.
Along with starter, alternator we add
on products like batteries, lube oils,
filters (we not only manufacture but
are one of the biggest players in
the Indian market for filters). Lucas
has a manufacturing plant and its
own manufacturing site for heavy
duty filters; Delphi-TVS has one for
common rail. For HCV there are a lot
of specialist products that will keep it
moving for quite a while; they all need
specialised service.The LIS foundation of business will
be service, not just parts distribution.
The other leg to stand on will be
technology and the third one will be
multi-brand. The days of a single
brand are gone in this market;
people want multi-brands, as brand
is choice. When a customer walks
in we want to say, ‘Yes, we have it.’
We offer a range of brands for similar
specs. That is what will define LIS for
the next few years - as an aftermarket
solutions provider.
Q: What about multi-brand service
for the Heavy Duty CVs from LIS?24 | AutoPartsAsia | AUGUST 2017
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