Automobile Retail

8/8/2019 Automobile Retail

1/19

Submitted to: Prof. Pankaj Sevak

Submitted by: Tapan Phadke


2/19

Channel of Distribution

Manufacture

Wholesaler

Semi-wholesaler

Retailer

Customer


3/19

Manufacturer

Banko (India) Pvt. Ltd.:

y Located at Baroda

y

Product:All type of automobile and industrial

radiator

Gas kit

Sales all products as OE parts e.g. Tata,

Maruti,M&M etc.


4/19


5/19

Continue

TVS Girlling:

y Specialist in Break Parts.

Wheel cylinder kit

Wheel cylinder assembly

Master cylinder assembly

Break buster assembly

yOE supplier


6/19

Continue

Engine Parts:y Engine Linear

y Piston

y Piston Ring

y Piston pin

y Thurs washer

y Connecting road brush

Following companies are producing engine parts: IPL

Menon Group

Mahale (Goetz)

Super circle


7/19

Continue

Tyre:

MRF

JK Tyres

Apollo

Ceat


8/19

Continue

Accessories:

y Autogold:

All types of head lights, switch lights

y ASP: Door rubbers, door garners

y ALP: Door rubbers, door garners

y Lumex:All types of head lights, switch lights

y Royal: DoorMirror


9/19

Supp-liers

Firm name Specialistin

Amit auto agency All types

Asha automobiles All types

Dilip auto agency All types

Shree sahjanand motors All automotive parts

Auto center Tata Telco (Dist.)

Pensol (OilAgency)

Spring parts, engine parts

Sadguru sales agency ELF, Total (OilAgency)

Puoliter Filter (oil filter, diesel filter etc.)

GSMotors (semi- whole seller) AllAutomotive parts

Amrutlal Desai &Co. Tyres, batteries (seller)

Dealer ofMRF Tyre, TVS Lucas

BuddhbhattiAutomobiles Volvoline engine oil (agency)

Prestilite battery (agency)


10/19

Supplier

From the list of suppliers in previous

slide, it is clear that the automobile

spare parts market in Bhuj isunorganized and there is high

competition in the market.


11/19

Continue

There are approximately 200

shops in Bhuj including following mix of

channel:

y 70 wholesalers at Bhuj-Madhapar

highway

y 30 semi-wholesalers

y 150 retail counters


12/19

Small Retailers:

As there is high competition in the market, thevery obvious question aroused is that how smallretailers can sustain in the market. I got following

reason from retailers.

According to them they use to contact to nearbyvillages garage people to increase their sales as itis not possible for them to retain same level ofprofit at a single location so they are trying tocapture near by villages market.


13/19

TargetMarket

The target market for this business includes:

y Garages

y Transporters

y Truck/ vehicle owner

y Retail customers


14/19

Credit:

For big transport company and garages:

y

1 month credit period

For Retailers:

y 1 week credit period


15/19

Collection/Payment:

At Madhapar highway, all

accounts are cleared on every Saturdayi.e. weekly basis. They collect payment

within a week. It is the system which is

followed in this business.


16/19


17/19

Sales Promotions

As a part of sales promotions, Companies are using Push

Strategy in this sector.

In push strategy, company use to attract sellers by

providing different schemes to them on the basis of sales

of their product.

They provide gift coupons to mechanics for retaining

them.

Kafila, IPL, Menon, QH etc. companies are providing gift

coupons for mechanics in order to increase their sales.


18/19

Critical Issues: Inventory Management:

It is really burning issue for all retailers as well as wholesalers. As new

models are launched in very short span of time by the companies, it is very

difficult for them to decide the inventory level for each model (new as well

as running model).

StockTurnover:

High turnover is another issue which makes this sector unorganized, as

all resellers cannot have capacity to keep a large amount of money invested

in the stock. As retailer cannot maintain stock, semi-wholesalers can sustain

in the market.

Shortage of raw material:

Due to shortage of raw materials it is difficult to get spare parts of

vehicles which in turn makes difficult to retain customers.


19/19

Conclusion:

Kachchh depends largely on transport

business. There is SEZ at Mundra port, there

is Kandla port, mines at Mata na Madh,

Sanghi Industry is there.

Due to this, transportation business is

growing continuously. Hence, automobilesector will continue to grow in Kachchh.

Documents

Automobile Retail