As the automotive industry rapidly evolves, Schaeffler India is at the forefront of innovation and customer support. With a focus on emerging trends like electric vehicles and advanced automotive electronics, Schaeffler is enhancing its presence in the auto ancillary market through a comprehensive strategy that includes cutting-edge products and extensive training programs. In this interview with N. Balasubramanian, Mr. Arbind Singh, Vice President, Vehicle Lifetime Solutions, Schaeffler India Ltd., delves into Schaeffler’s commitment to quality, their diverse range of products, and their innovative REPXPERT Training Van initiative, which brings vital technical knowledge directly to mechanics across India and beyond.
‘Schaeffler Automotive Aftermarket’ sounds interesting. Can you please outline the range of products and services Schaeffler offers under the division?
Schaeffler Automotive Aftermarket offers repair solutions designed to ensure optimized longevity, efficiency, and performance of vehicles throughout their lifespan. This division is responsible for our spare parts business and delivers innovative repair solutions of original-equipment quality. Our three brands, LuK, INA, and FAG, offer clutch and release systems, engine and transmission applications, as well as chassis applications.
REPXPERT, our service brand for workshops and garages, combines both physical and digital modes to reach our technician partners across India. The platform provides comprehensive training and support so that our consumers experience the best service possible. With REPXPERT, we seek to prepare technicians for the changes in technology and regulations that will shape the future. We are further introducing the REPXPERT mobile application, which provides mechanics and garage workers with information on product types, fitment methods, and a range of applications.
Additionally, our brand Schaeffler TruPower offers a wide range of lubricants for both the automotive and industrial segments. We also have a comprehensive range of wiper blades under the Schaeffler TruPower brand. Our wiper blades, made of high-quality rubber with an aerodynamic design, ensure smooth wipes and crystal-clear visibility.
We have a diversified portfolio and presence across passenger cars, commercial vehicles, and tractor segments. Innovative products and stringent quality tests make our products reliable and efficient, empowering our customers with a worry-free end product. Our strong R&D support enables us to leverage our global technical capabilities and align them with Indian markets.
Steering & suspension parts are an important category in the aftermarket. Can you talk about the USPs of the STS parts Schaeffler has designed specifically for passenger cars in the Indian market?
Schaeffler’s product portfolio focuses on uncompromising quality for maximum service life, and every element of our chassis components is developed and tested by our engineers in line with the most stringent quality standards.
Schaeffler’s Steering and Suspension (STS) parts compensate for external conditions caused by changing road surfaces, handling, and environmental influences such as water, heat, and dirt.
This ensures comfort, safety, and optimal driving dynamics in every situation. Schaeffler’s STS parts offer optimal component quality and ensure high durability with maximum service life, which enables ease of use during maintenance.
What does Schaeffler’s parts basket for the Steering & Suspension category look like? How wide is your range, and how many parts do you offer in total? How do you ensure high levels of availability and timely delivery?
Schaeffler is ready with a comprehensive portfolio of STS parts, comprising more than 400 parts for the domestic market and over 200 parts for the European market. Besides offering parts that meet OE-quality standards, our coverage is close to 90%, and our range includes a broad spectrum of parts compatible with all significant passenger car models in the Indian market.
Our efficient warehousing solutions manage stock levels proactively and facilitate quick order processing and dispatch through rapid and reliable delivery services. Schaeffler provides extensive aftermarket support with a wide distribution network across India, ensuring easy availability of parts and delivering enhanced performance, safety, and value to customers.
There is a general notion that when parts are to be replaced, cost takes priority over product quality, durability, and reliability. What is your take on the importance of using quality parts for safe and smooth driving?
Schaeffler has always emphasized the critical importance of using high-quality parts to ensure proper vehicle control and smooth driving, which directly impacts the safety of drivers and passengers. Inferior parts can often lead to premature wear and failure under dangerous driving conditions. High-quality components are designed to withstand the stresses of everyday driving, including varying road and load conditions. This durability ensures longer service intervals and reduces unexpected breakdowns, contributing to overall vehicle reliability.
While the initial cost of high-quality parts may be higher, these parts often prove to be cost-effective in the long run. Their extended lifespan and better performance reduce the frequency of replacements and associated labor costs, as well as minimize the risk of additional repairs caused by related component failures. Schaeffler integrates advanced technology and engineering into all its components to enhance their performance and reliability. This includes innovations in materials, manufacturing processes, and design improvements that contribute to better overall functionality and longevity of the parts.
With new vehicle models being launched at frequent intervals, how does Schaeffler ensure parts availability for all models and offer widespread coverage across sub-segments and models?
Several new vehicles have been introduced in India recently, spanning a range of segments from electric vehicles (EVs) to luxury sedans and SUVs. Auto component manufacturers face significant challenges in ensuring parts availability for all models and offering widespread coverage across various sub-segments. We at Schaeffler adopt several strategies to manage this complexity.
We conduct advanced demand forecasting using data analytics, leveraging historical data, market trends, and predictive analytics to forecast demand for different components. We also collaborate with our OEM partners and work closely with them to get early visibility into upcoming models and their parts requirements. We follow a flexible manufacturing process and develop parts with modular designs that can be easily adapted to different models. We also implement flexible manufacturing systems that can quickly switch production lines to different components as needed.
We maintain a diversified supplier base to mitigate the risks of supply disruptions and keep strategic inventory levels to buffer against fluctuations in demand and supply chain delays.
Additionally, we adopt just-in-time (JIT) inventory systems to reduce excess stock while ensuring timely availability of parts. Schaeffler always believes in investing in research and development to innovate and improve parts, ensuring they meet the evolving needs of new vehicle models. We use rapid prototyping and rigorous testing to quickly develop and validate new parts.
We have established a robust supply chain base to quickly distribute parts to different markets.
While offering the right product is one thing, backing it up with the required customer support is equally important to being a successful brand. What has Schaeffler done in this regard? How do you cater to your customers and ensure their confidence in Schaeffler’s parts and services is sky high?
Customer support is a critical component of any business, significantly influencing customer satisfaction, loyalty, and overall success. We ensure effective customer service through several strategies, focusing on quality, innovation, and customer-centric practices. At Schaeffler, we prioritize understanding and meeting the specific needs of our customers. We engage in continuous dialogue with our customers to tailor solutions that address their unique challenges and requirements.
We maintain high standards for product quality, reliability, and performance. This commitment to quality helps build trust and long-term relationships with our customers. We invest heavily in research and development to bring innovative products and solutions to the market. Our advanced technological capabilities enable us to provide cutting-edge solutions that enhance customer operations.
We provide extensive training programs and technical support to ensure that customers can maximize the benefits of Schaeffler products. This includes on-site training, workshops, and detailed documentation. Our robust supply chain ensures timely delivery of products, reducing downtime and maintaining smooth operations for customers. Our focus on sustainability and corporate responsibility aligns with customers’ increasing emphasis on sustainable and ethical business practices.
We actively seek customer feedback to continuously improve our products and services. This feedback loop helps us stay responsive to changing customer needs and market conditions.
These strategies combined enable Schaeffler to provide high-quality, responsive, and innovative customer service that meets the evolving demands of our customers.
What kind of potential do you see for growth, and what do you think are the major growth drivers for both your company and the market as a whole? How do you plan to leverage these opportunities to make it big in the auto ancillary space in India?
India is one of the largest automotive markets globally. The demand for vehicles, both passenger and commercial, is steadily increasing, driving the need for auto components. Indian auto component manufacturers export to more than 160 countries, with exports growing steadily. This trend is expected to continue as India becomes a global manufacturing hub.
Initiatives like the Production Linked Incentive (PLI) scheme and the ‘Make in India’ campaign aim to boost manufacturing and attract foreign investments in the auto components sector. There is increasing foreign direct investment (FDI) in the sector, and several global automotive giants are setting up or expanding their manufacturing bases in India.
The global shift towards EVs opens new opportunities for auto component manufacturers, especially those focusing on batteries, electric drivetrains, and related technologies. Indian companies are investing in research and development to innovate and improve the quality of auto components, aligning with global standards.
India offers a cost advantage in terms of labor and production costs, making it an attractive destination for manufacturing auto components. A large pool of skilled engineers and technicians contributes to the industry’s growth, enhancing the quality and innovation of products. The presence of a well-established supply chain and logistical network supports the efficient production and distribution of auto components. Ongoing improvements in infrastructure, such as better roads, ports, and industrial parks, facilitate smoother operations for manufacturers.
Adhering to stringent global standards and regulations presents a challenge but also an opportunity for Indian manufacturers to enhance their capabilities. Increasing focus on sustainable practices and green manufacturing offers a chance to innovate and lead in eco-friendly auto components.
The auto components industry in India is poised for significant growth, driven by a robust domestic market, supportive government policies, technological advancements, and cost advantages. Companies that leverage these opportunities while addressing challenges will likely thrive in the evolving automotive landscape.
At Schaeffler, we have a comprehensive plan in place to thrive in the auto ancillary space in India. We regularly analyze the current market landscape, key players, market size, growth trends, and demand-supply dynamics. We focus on emerging trends such as electric vehicles (EVs), autonomous driving, and the increasing demand for advanced automotive electronics.
We offer a wide range of products catering to various segments of the automotive industry, including engine components, electrical parts, and safety systems. We strongly invest in R&D to enhance product quality and reliability, ensure adherence to global quality standards, and embrace new technologies and innovations, particularly in areas like lightweight materials, green technologies, and smart automotive solutions. We collaborate with technology providers to access advanced manufacturing technologies and innovations.
We continuously enhance our efficient supply chain network to ensure timely delivery of products. We implement advanced inventory management systems to minimize holding costs and avoid stockouts, and we optimize logistics to reduce transportation costs and improve delivery times.
We are intensively focusing on both OEMs and the aftermarket, aiming to position Schaeffler as a reliable and high-quality supplier. We are strengthening our relationships with customers through excellent service and support and have implemented a robust feedback mechanism to continuously improve our products and services.
You are rolling out your REPXPERT Training Van again from August 2`024. How has been this initiative for your organization? What is the response of the mechanics for this activity?
In the rapidly evolving automotive industry, staying updated with the latest technologies and repair solutions is crucial for mechanics. However, access to high-quality technical training can be a significant challenge, especially in remote areas. To address this gap, we launched innovative training campaigns using mobile vans in India under the Schaeffler REPXPERT service brand, bringing technical knowledge directly to mechanics who need it most.
The automotive industry is undergoing a transformation with the advent of electric vehicles (EVs), advanced diagnostics, and new repair methodologies. Traditional training centers, often located in urban areas, may not be accessible to mechanics in remote locations. This disparity can create a skills gap, affecting service quality and hindering mechanic growth.
Mobile training vans offer a flexible and effective solution by bringing training directly to mechanics. Equipped with the latest tools, technology, and expert trainers, REPXPERT vans travel to various locations, providing hands-on training to mechanics.
Schaeffler India launched its first REPXPERT training van in 2019 for workshop professionals in the passenger car segment. Since then, Schaeffler Automotive Aftermarket India has successfully trained more than 4,500 mechanics in over 130 cities. This recurring initiative has been well received, demonstrating Schaeffler’s commitment to technological innovation and practical training for our valued partners.
Recognizing the need for similar training in the commercial vehicle segment, we launched a dedicated training van campaign in 2023, reaching over 2,500 mechanics providing repair services for commercial vehicles in around 40 key markets. Both mobile vans are equipped with advanced tools and spare parts, allowing trainers to conduct practical training sessions on vehicle maintenance, diagnostics, and repair. The training includes theoretical parts on automotive engineering principles and practical workshops where mechanics can apply their learning on real systems and components. Upon completion, participants receive certifications that enhance their market credibility.
The engagement not only imparts technical skills but also emphasizes customer service, safety protocols, and the importance of using genuine spare parts. By bringing training to mechanics’ doorsteps, Schaeffler aims to ensure that even those in the remotest parts of India have access to the latest knowledge and skills.
I am pleased to share that after the tremendous success of this campaign in India, we have also implemented it for our technician partners in Thailand. In Thailand, mobile training vans are playing a pivotal role in upgrading the technical expertise of automotive mechanics. Inspired by the success of mobile training campaigns in India, Schaeffler Thailand recently introduced its first REPXPERT Van, targeting to travel 16,000 kilometers and cover 27 provinces across Thailand in 2024. These campaigns aim to upgrade the skills of existing mechanics and prepare new entrants for the industry.
Mobile training campaigns are revolutionizing how automotive mechanics receive technical knowledge. By bringing training directly to mechanics, these initiatives are enhancing their skills and contributing to the overall development of the automotive service industry. As the industry continues to evolve, such innovative approaches will be crucial in ensuring that mechanics are well-equipped to meet changing demands and provide high-quality service to their customers. Building on this idea, Schaeffler plans to extend REPXPERT training campaigns by launching mobile vans in Indonesia and the Philippines in 2025.