By N. Balasubramanian
The DOST has been a runaway success for Ashok Leyland with rising demand and a ramp-up in production at the company’s Hosur facility. The vehicle has been very well received by the market as Ashok Leyland plans to expand the product network across the country. We take a look at what Mr. Nitin Seth, Executive Director, LCV Sales and Marketing and Defence Business, Ashok Leyland, had to say about the head-start of DOST , as we get up-close with the vehicle’s first-ever lady customer. The DOST story is rounded off with a visit to two of its best dealerships – Kun Capital and Rainbow Motors.
MOTORINDIA: The DOST has been a big success for Ashok Leyland. Please take us through the journey of DOST since its launch.
Nitin Seth (NS): The DOST is the first product from the Ashok Leyland-Nissan joint venture. We launched the product in September 2011, in the four southern States of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala, and Maharashtra and Gujarat. Later, the vehicle was launched in Rajasthan too. Uniquely positioned as a 1.25-tonne small truck, the vehicle was an expression of providing Japanese quality at Indian costs. Packed with enhanced power, greater versatility, well-suited for both inter-city and intra-city goods transportation, it offers higher productivity at an extremely competitive cost of ownership. Thanks to its class-leading performance, market response has been overwhelming. Apart from a very healthy order position, the DOST is already the No. 2 brand in its 2 – 3.5T category and has garnered a market share of 21% from its seven markets.
MI: How many vehicles have you sold till date? Has the response been as expected?
NS: We have sold 14,841 vehicles since launch (September 2011 to June 2011). The response has been overwhelming, and we now have a waiting period for the DOST emphasizing customer’s confidence in our product. As of now, demand exceeds supply, and we have ramped up production to meet the same.
MI: Which are the markets in which DOST is offered? How are your expansion plans progressing?
NS: Till April, the DOST was offered in seven States (Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Maharashtra, Goa and Gujarat). We launched the product in Rajasthan in May 2012. As of June 2012, DOST is sold through 32 dealerships in 76 outlets. Our primary focus at present is to adequately meet the demand from our existing markets before seeking to spread our reach and network by ramping up our production, which is being done in a phased manner.
MI. What according to you have been the USPs for the strong performance of the product?
NS: The DOST has a very robust value proposition to the Indian LCV customers whose expectations are on the rise. A new level of vehicle experience is on offer thanks to its carefully calibrated design and features, higher payload, enhanced power, best-in-class fuel economy, versatility, comfort and safety.
MI: What are the RUVs on offer at present? How have they been received by customers?
NS: We currently offer company-built ambulances, service-at-site vans, refrigerator containers and steel containers. These ready-to-use (RUV) solutions are ARAI and company certified to ensure quality and deliver better value proposition to our customers.
MI: With the DOST performing well, could you give us an update on the new variants on offer from AL Nissan – PARTNER & STILE?
NS: To maintain the momentum, two new generation platforms were showcased at Auto Expo 2012: the multi-functional vehicle – STILE and the contemporary 6-tonne PARTNER that represent very different faces of the LCV spectrum. These new products will allow the company, over the coming years, to address a very wide range of customer needs and applications. They will be thoroughly tested, indigenized and be ready for launch in the next fiscal year.
MI: Despite the current industry slowdown, the LCV segment is expected to remain strong. What are your views on this? And how do you see DOST and the LCV segment as a whole performing in the next few months?
NS: The growth in the LCV segment has been driven by the increasing need for last-mile deliveries due to the hub-and-spoke model rapidly gaining ground, rising consumerism and greater organized retail activity. Presently, while depressed sentiments are being a dampener for large capital investments, the LCV segment and more so, the SCV (Small Commercial Vehicle) segment that accounts for over 75 per cent of the LCV market, have remained unscathed and have continued to post robust growth. We expect the trend to continue going forward.
Ruba, a vegetable-vendor, shunts between Hosur and Salem every second day for selling vegetables and provisions. She became a DOST customer in February this year and ever since has seen her profits soar, thanks to the huge benefits offered by the vehicle.
It all started in 2008 when Ruba and her parents were left stranded by their driver in the middle of nowhere. Ruba, without her husband’s support, did not know to drive but had no choice other than take the wheels of her former LCV. Since then, without looking back, Ruba has fought against the hardships of life, successfully sustaining her family. She owned a different vehicle a few years back, and when the DOST was launched, the buzz around the town lured her to consider buying the vehicle.
Considering the promising prospects offered by the vehicle and impressed with its specifications, she bought the DOST, a move which has brought her big returns in business. Says Ruba: “Ashok Leyland was talked about very famously, and we also heard from people that the vehicle was good. We wanted to buy the DOST in February and went ahead by taking a 40-month loan.”
The DOST has given Ruba and her family a lot of benefits, financially speaking a profit of around Rs. 25,000 per month. Her 160 km drive every alternate day from Hosur to Kolathur (near Salem) takes three hours, but the journey gives her very little exhaustion, thanks to the vehicle’s overall performance and comfort levels. She has opted for a power steering, non A/C model and is glad that the heat levels in the cabin are quite low. The vehicle has remained sturdy in the toughest of road conditions even while being loaded to its maximum capacity.
The Ashok Leyland DOST has scripted an amazing success story of a lady with ambitious plans in life, and it is refreshing to see how a small commercial vehicle can change a family’s fortunes. In Ruba’s own words, “we are keen on buying another vehicle from Ashok Leyland, may be when they launch the next new product, and as far as the DOST is concerned, it is now like a member of our family.”
Kun’s uncanny approach
Kun Capital is one of two LCV dealerships of Ashok Leyland in Chennai. The Kun brand has been dealing with passenger cars for 14 years and has made its first entry into the commercial vehicle segment with its DOST outlet.
Mr. U. Arunkumar, Director, Kun Capital, talks on Kun’s venture into the commercial vehicle segment with Ashok Leyland.
Kun’s first DOST outlet came up in Trichy in December 2011, followed by the Chennai dealership which was set up in March this year. The dealership has an open layout and is similar to a passenger car dealership in most aspects. The quality of infrastructure is also on par with a passenger car dealership, driven by the fact that LCV customers deserve the same service as passenger car customers.
Says Mr. Arunkumar: “We have invested similar to what we invest in a passenger car dealership. In commercial vehicle business, the product is a part of the customer’s livelihood, so it is important to service the customer in the best possible way.”
Kun’s Chennai dealership has delivered around 275 vehicles while close to 320 have been delivered from its Trichy outlet. Kun Capital, Chennai averages nearly 200 bookings per month, while the Trichy dealership registers around 150 bookings.
Ashok Leyland has seen huge success with its DOST and one main reason for the strong sales of the product is the professional and aggressive approach of its LCV dealerships such as Kun Capital. In fact, Kun’s Chennai outlet has been chosen as the standard layout by Ashok Leyland and will be followed as a benchmark for all its LCV dealership across the country. Kun is also expanding its footprint in Tamil Nadu with another outlet in Thanjavur on the cards and more additional touch points in the offing.
DOST dealerships have seen extremely good customer response with the product being positioned in such a way that it can cater to last mile applications and is also suitable for city-use. Even before its launch, there was a lot of hype about the product, with many customers having waited for over a year to buy the vehicle. DOST being the company’s first-ever LCV, Ashok Leyland’s brand equity has certainly played a big part in the product’s success, however experienced customers are satisfied only by a really good product and that is exactly what the DOST has proved in the few months of its launch, that it is a power-packed all-round performer in the LCV segment.
Rainbow’s multi-color sales strategy
Rainbow Motors, located in Salem, is a dealership of Ashok Leyland LCVs. The outlet has been one of the most successful dealers of DOST in Tamil Nadu and has been riding on the overwhelming success of the vehicle. We take a look at how Rainbow Motors has profited from selling one of the hottest LCVs in the Indian market.
The dealership was started in September 2011, banking on the confidence on the Ashok Leyland brand in the market, which was an important factor for setting up the outlet. The districts of Dharmapuri, Krishnagiri, Hosur and Namakkal are automotive hubs where Ashok Leyland is a highly established player and its brand has special regard, thanks to the performance of its products, backed by excellent sales and service support.
Mr. Samson, Sales Manager, Rainbow Motors, says: “We did not expect such great impact from the DOST. We are very happy with the performance of the DOST in terms of drive, comfort, speed, pick-up and many other factors. It is a tailor-made vehicle for rural transport. The customer response has been very good and it is proof for the success of the vehicle.” The DOST offers good economic benefits such as high load-carrying capacity, an impressive mileage of 16.5 km/l depending on the load, road conditions and driving style. During long runs in highways, the vehicle has even clocked a fuel efficiency of 19 km/l.
Rainbow Motors has sold over 1,000 DOSTs till date while its order book is quite heavy too. Out of the first 1,000 vehicles sold, 228 were basic models, 628 with power steering and the rest were high-end versions with AC. The dealership also has an excellent service set-up and service team, servicing around 20 to 25 vehicles per day, with customer satisfaction as its prime focus.
Customers initially come as visitors to the dealership to take a look at the vehicle, but after knowing more about the product and especially after taking a test drive, most visitors go ahead and purchase it. The outlet has had some interesting customer feedbacks which are proof of the DOST’s huge success.
One of the customers who transports goat and cattle from Salem to Goa bought eight DOSTs and is currently saving close to Rs. 12,000 per trip. Another customer who sells flowers for a living makes a minimum profit of Rs. 3,000 per day, thanks to his decision of buying the DOST. ‘A friend in need is a friend indeed’. For such customers, the Ashok Leyland DOST is a real dost (friend) for life.