VST Motors Ltd. (VST) is one of the leading CV dealers of Tata Motors with over six decades of close association with the principal. Mr. V.S. Arun, Managing Director, VST, shares his views on the journey ahead, plans to expand company operations and its foray into new segments.
Mr. Arun says: “Before talking about the business ahead, I would like to go back a little in the timeline. In the last 10 years, the industry has changed a lot more potentially than in the previous 50 years. New segment SCV has come about during this 10 year period for both cargo and passenger transport. There has also been a big change in multi-axle vehicles, now getting deployed towards increasing the volume of goods being transported. And, with the improving road conditions, I foresee larger and smaller tonnage vehicles consolidating their market share and the mid-segment dissipating over a period of time. The dealers will have to figure out their approach in handling large fleet. In the coming years, this composition will change and we could see more of the 100 plus truck customers in the field. Hence the need for a professional approach”.
As for the thrust areas, he points out: “CV’s first role is in movement of goods and most of us don’t play the ancillary add-ons role – we would like to focus on this side. Vehicles like cement mixers, tippers, reefers, etc., are currently produced mostly in the unorganised sector. Depending on the applications in the geographic location, dealers like us can supply the complete unit, be it a mining truck or a special body vehicle, for ports application. We have in our group an established NBFC, Gove Investments & Finance Co. Ltd., for vehicle financing. We want to extend the financing facility for the add-ons to be supplied too, and with the Add-ons manufacturing experience and a better database, the risk rewards factor becomes predictable and easier”.
What would be the roadmap for realisation of plans and targets? Mr. Arun responds: “With GST and BS VI coming through, there will be a surge in demand, and we plan to reinvest in the business by increasing the customer touch-points. Gove Finance will play an active role, and I want to expand the operations and make it a listed company. It is also my endeavour to infuse professionalism in the all-round operations and leverage technology to address the customer demands”.
“Priority focus areas will be Add-ons and Gove Finance. I opine that CV segment too will evolve like the passenger car segment viz., like having many versions in the range to meet the aspiration levels of customers. In that unfolding scenario, we want to become a business partner in customer’s enterprise – meaning taking responsibilities for all transport related tasks, supplying specific vehicles, parts, attending to breakdowns and providing timely service; and also leasing out vehicles as and when the market matures. We have also a software company that has developed special application programs for our parts distribution operations. We want to extend its services to the CV line for EMIs and payment related issues and improve the operational effectiveness”, adds Mr. Arun.
The VST Group represents 10 manufacturers in Tamil Nadu and Karnataka, covering a wide spectrum of auto business ranging from motorcycles to luxury cars, apart from parts distribution and manufacturing agriculture tillers. In the auto parts business it plans to put in place at least 20 verticals in the coming days.
Mr. Arun also points out that there are plans to expand parts distribution pan-India and take operations to a higher level. The team under his guidance should be able to deliver the results within the time-frame set.