TVS Automobile Solutions Ltd. (TVS ASL), India’s leading aftermarket service provider, has announced that it would hive off its Roadside Assistance business (RSA) to form a new joint venture company, named TVS Auto Assist (India) Ltd., with the Automobile Association (AA), UK’s most trusted brand and popular breakdown cover provider.
The move would mark the coming together of two market leaders to enhance the service offering and capabilities to tap the market opportunities not only in India but also in other emerging markets in Asia, the Middle East and Africa.
The rationale behind forming TVS Auto Assist India Ltd. (TVS AA), a 51:49 JV between TVS ASL and AA, would be to offer not only the state-of-the-art breakdown services to customers but also to expand with OEMs, insurance companies and other corporate customers in India and other emerging markets. Further, TVS AA would provide breakdown assistance services to all vehicle categories – two-wheelers, three-wheelers, passenger cars and commercial vehicles. With vehicle sales expected to increase significantly in India, there is a real opportunity for this JV to take a pioneering role in the B2C market as well.
Said Mr. R. Dinesh, Director, TVS Automobile Solutions: “TVS is the pioneer in providing breakdown services in India. We are happy to partner with AA to further streamline our offerings in India and expand to other emerging markets. Through this association, we can provide similar service experience to multinational automobile brands present in India as well as in other overseas markets. With TVS and AA coming together, I am sure our customers can continue to experience world class services from us.”
Mr. Bob Mackenzie, Executive Chairman, AA, observed: “We are entering the Indian market at a time when its automobile growth is set to take off. We are delighted to announce this joint venture with TVS as they have the largest service infrastructure in India, which is a big plus for our B2B customers in India. In addition, we will bring our global expertise to the roadside assistance business, which we expect to transform into a holistic business centred on the customer.”
AA, with over 40 per cent market share in the UK and over 15 million customers in RSA business, attended 3.5 million customers in the UK in 2014, translating into 10,000 customer services everyday. It also offers a variety of products and value-added services, besides its roadside assistance that includes insurance and driving services.
TVS RSA business has unmatched infrastructure with presence all over India covering 1,795 locations and 28 States with a network of more than 4,000 authorized service providers (ASPs). It offers cover to over one million customers and attends to 100,000 breakdown services in a year.
Further, with over 1,000 tow trucks for patrolling and towing operations to support stranded customers. TVS RSA’s service offerings include emergency breakdown (mechanical and electrical), flat tyre assistance, key lock-out services, cab assistance, fuel delivery, patrol and towing assistance.