Greater focus on aftermarket and exports
Lucas-TVS, established in 1961 as a joint venture between Lucas UK and T V Sundram Iyengar & Sons to manufacture automotive electrical systems, has been a front-runner in auto electricals in India with over 50 years of expertise in design and manufacturing. A market leader, the company has been continuously innovating to stay ahead of competition in the OEM market and at the same time has sharpened its focus on the aftermarket segment and exports to buck the auto industry slowdown and keep the growth momentum.
Since inception, Lucas-TVS has been focusing on meeting the needs of its customers through a range of quality products. The company has been regularly coming up with its new products for its OEM customers. This has contributed a lot to its success in the domestic market, despite growing competition from multinationals. In order to meet the mounting demand in developing countries like India for fuel-efficient vehicles which are light in weight, with lower CO2 emissions, experts in Lucas-TVS continue introducing new generation products with advanced technology. The company is planning to expand its product portfolio by catering to CNG vehicles as well and is working on developing CNG kits that offer complete solutions to customers.
Development of new products at the company is driven by its R&D team of highly qualified engineers with years of experience and expertise in the field. Among some of the new product developments, gear reduction starters have been well received in the market, with the company planning to increase production capacity for the same in the coming years. Lucas-TVS has developed a range of internal fan alternators with and without vacuum pump for the passenger car, UV and CV segments. Amongst the new technologies introduced by the company is the stop-start system while those under development include the regenbraking and other electrical accessories such as electric vacuum pump.
Expanding global presence
While new product innovations and overall quality policy have contributed to the company’s sustained leadership in the domestic market, the current slowdown in the automotive industry which has seen vehicle volumes plummeting to new lows has given Lucas-TVS an opportunity to focus more on the aftermarket segment and also expand its customer base in export markets.
Says Mr. Satvinder Singh, Executive Director, Lucas-TVS Pvt. Ltd.: “Currently, our main focus is on the domestic aftermarket and exports where we see a lot of potential for growth. We are aiming to increase our exports three-fold in the next few years. In both the domestic and export markets, we remain committed to delivering quality products through constant innovations and achieving high levels of customer satisfaction, backed by excellent service.”
Today Lucas-TVS exports half-a-million compressor motors annually to WABCO’s facility in Germany, with excellent PPM levels. WABCO supplies suspension parts fitted with Lucas-TVS motors to leading car manufacturers in Germany, including Mercedes, BMW and Audi. The company also supplies wiper motors to Commercial Vehicle Group (USA), who supply the wiper system to truck OEMs in the North American market. In the off-road segment, it serves all-terrain vehicle manufacturers such as Artic cat and Polaris, among others.
Full-range player
In the domestic market, Lucas-TVS has a market share of nearly 45 per cent in the OEM segment for products such as alternators, stop-start systems, brushless motors and wiper motors. The company works with almost all leading OEMs in the country such as Tata Motors, M&M, Daimler, Volvo, Ashok Leyland, VECV, MAN, Suzuki, Honda, Hyundai, Renault and Cummins.
Lucas-TVS also caters to the huge two-wheeler market in the country. Nearly 70 per cent of the two-wheelers come with an automatic start option which provides huge opportunity for growth. The company supplies to leading two-wheeler makers in India and is keen to enter the promising Indonesian market as well. It also supplies to tractor manufacturers in the country, making it a truly full-range supplier in the automotive space.
Lucas-TVS has been committed to its customers by following them geographically, leading to better logistics efficiency. The company currently has seven manufacturing units across the country – two each in Chennai and Puducherry and one each in Rewari (Haryana), Chakan (Pune) and Uttarkand – thus having its presence in the major vehicle manufacturing hubs in India. It has a sales and service network of around 800 dealers and 2,000 sales outlets, one of the largest in the country.
The company clocked a turnover of Rs. 1,650 crores in FY13, of which Rs. 150 crores came from exports, Rs. 200 crores from the domestic aftermarket and the rest from the domestic OEM market. Nearly one half of sales is accounted for by the passenger car and utility vehicle segments, with CVs and tractors contributing 20 per cent each and two-wheelers the balance 10 per cent.
At Lucas-TVS, quality is not just conformance to drawings or specifications but optimum customer satisfaction. The company has bagged a number of awards, including the prestigious Deming Grand Prize and the Export Excellence Award, in addition to several quality circle awards presented by its esteemed customers.