SONGZ draws blueprint for Indian bus AC market

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Songz Automobile Air Conditioning Co. Ltd., a Chinese mobile air-conditioning giant, is drawing up a blueprint to gain a strategic foothold in the Indian market. The 17-year-old firm, which specialises in research & development, manufacturing and marketing of air-conditioners used in commercial and passenger vehicles, has already made headway in the booming segments of school buses, tourist buses and long route buses, and is looking to make a similar mark in the staff transportation segment. The Shanghai-based firm began its operations last year and is rocketing ahead with phenomenal response for its products.

India – a strategic market

Discerning the importance of the Indian mobile air-conditioning market, Songz has appointed Mr. B.S. Arora, with an experience of 33 years, as General Manager, Business Development – India. Mr. Arora, who already had stints with companies such as Motherson-Spheros and TransACNR, affirmed: “My roles in previous companies involved a lot of challenges and, driven by my passion to take up challenges, I took the onus of leading Songz in India. SONGZ-Arora-picSongz products are well known for their quality, durability and efficiency. And I am happy to state that Songz products are well accepted in the market. India is one of the major focus markets for the company. This is because India is seen as a growth engine in terms of automobile sales. Moreover bus air-conditioning is not a luxury anymore.”

At the moment, Songz is selling only bus air-conditioners and is catering across the spectrum comprising mini, midi and large bus segments. The size of the buses can be from 5 metres to 14 metres in length. The company has products with the output ranging from 8 KW to 48 KW. Its target group comprises travel and tour operators, fleet owners, bus operators, etc. In fact, it has struck a deal with a few very reputed and renowned schools in Delhi.

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OEM segment

China is primarily an OE market, and India is also following the same trend. Mr. Arora stated that Songz is also open to cater to the direct market. However, it is busy establishing the sales and service network across the country and is widening its base in the aftermarket vertical in the country.

It is to be mentioned that Songz air-conditioning products are utilized by some of the leading automobile manufacturers in China such as Changan Automobile, Southeast Motor, Iveco, King Long, Golden Dragon, Dongfeng Automobile, SONGZ-pic-12JAC, Chery and Foton. Its air-conditioning heat exchangers are already exported to Asia, North America and Taiwan.

USPs

Songz products are known for their technological finesse which is enabling its Indian arm to reap rich dividends within the first year of its operation. The bus air-conditioners are made of lightweight aluminium which helps in energy and space efficiency of the vehicle.SONGZ-pic-3 Moreover, all its products are very competitively priced.

Mr. Arora also disclosed that Songz has developed the ACs keeping the Indian tropical condition in mind.  Moreover, Songz ACs have many extra features like malfunctioning diagnostics and high-end designing that ensure the product has less fans but is giving more output.

Songz always follows the strategy of producing efficient, energy-saving and environment-friendly products and adhere to the philosophy of technical marketing. SONGZ-pic-1“As a result, we are able to convince our customers about the salient features of the products,” asserted Mr. Arora.

Manufacturing plans

India is seen by Songz as a market with tremendous potential and growth, more particularly in the bus air-conditioner segment. Songz, of course, is expanding its footprint in India and is moving ahead in the direction of establishing its manufacturing and assembling facility in the future. The location and investment plans are yet to be decided. SONGZ-pic-6Meanwhile, the company is scouting for a location in Mumbai or Chennai where it can set up a 2,000 sq.ft. warehouse. That will help the company to execute orders of any magnitude.

Current challenges

Staying optimistic despite tough market conditions in the country at present, Mr. Arora stated that to establish base for any new products or services in a new market/territory every company has to face the preliminary challenges but in India with a government like that of Narendra Modi-led BJP at the Centre, one could expect a quick economic turnaround that will give a big boost to industrialisation, employment, and different sectors like tourism, hospitality, bus air-conditioning, etc. SONGZ-pic-2There is also a move to reform the tax structure. All the policies initiated thus far by the Government would prove most growth-oriented.

Songz has plans to bring truck refrigeration units also to the Indian market in future. Priority for Mr. Arora is to establish the company name first and then to consider entry into other related segments.

Songz India hopes to clock 300 units this year, 500 units by next year and 1,000 units by 2016. This may also involve catering directly to the OEMs. As far as its distribution count is concerned, the company is planning to have outlets all over the country. This means there will be a distribution base each in the East, West, North and South India. SONGZ-pic-7At present, it has a distributor in the West, South and East and has 27 service locations all across the country. It is now planning to have four regional points.

About the company

Established in 1998, Songz Automobile Air Conditioning Co. Ltd. is a joint stock company specialising in research & development, manufacturing and marketing of vehicle air-conditioning systems with total assets of RMB 3 billion. The company is headquartered in No. 4999, Huaning Rd, Xinzhuang Industrial Zone, Shanghai. SONGZ-pic-10Now it has over 3,000 employees, including over 300 with intermediate and senior professional titles, 20 with Master Degree and five with Doctor Degree, as well as 10 expert advisors of the auto industry. 

In 2010, it was successfully launched in the Shenzhen Stock Exchange, abbreviated as Songz Stock, with stock code of 002454. Its main products cover five components, for air-conditioning systems for medium and large-size passenger cars, light buses, rail vehicles, and freeze & refrigerated trucks, as well as automotive air-conditioning parts.

SONGZ-pic-8In addition, it holds the shares of Xiamen Songz, Anhui Songz, Chongqing Songz, Beijing Songz, Chengdu Songz, and Nanjing Boshilang. Songz, the national brand of mobile air-conditioning system in China, quickly became a flagship of national enterprises in this field and even a world-class provider of the mobile air-conditioning system on the basis of powerful technical and marketing strength. It hopes to replicate a similar business model in India.