July 22, 2012

Running a Automobile Business....

 My career's fate got sealed over a couple of drinks with my mom and friends at dinner. The announcement of us bagging the Maruti Suzuki Dealership was a shocker and i never anticipated the Pros and Cons of the same @ a huge level!  So, i chucked my dream of a second PG degree from a scottish university and plunged headfirst in the family business :)

Penning down my experiences so far on this wonderful vroooming journey of selling happiness :)

Selection Process and MSIL: Mom waltzed through the selection process with ease. Maruti Suzuki India Ltd (hence, reffered as MSIL) follows strict protocols in every aspect as it conforms to the japanese style of management. From the CEO till the shop floor worker are dressed in uniform and no deviation from this is allowed.
The HO @ delhi is worth visiting. The ground floor is a showroom for all maruti suzuki models and suzuki motorcycles. their canteen serves simple yet, tasty lunch for all its employees.

The selection process is based on many parameters and applicants are scrutinised from their social status till the tax papers.. from the family members till the market reputation. a detective agency is hired to do a third party check on the short listed applicants. People owning Land are highly prefferred since, cost of acquiring land (hence, project cost is lowered).Final interview is taken by the top honchos at MSIL.. It is like facing a firing squad wherein the questions are fired consistently from a 8 member panel.

Setting up the Dealership/Construction/Recruitment:

Note to Budding entrepreneurs .. when u estimate your project cost will be 'x', you should keep '2x' as reserve/backup. The project cost and time always escalates when u start the practical application of your business plan.

MSIL has a Corporate Identity (CI) manual which lists how the showroom must be constructed. Example: where the customer lounge should be, which colour sofa should be fixed, how much meter long should be the reception table etc.
It has vendors fixed and we are supposed to source stuffs from them only. Talk abt Huge commissions from an ALL-INDIA basis ;)

every plan needs to be approved by the dealer development officer (one who eats ur life to keep the work on track on behalf of the management of MSIL).

If one survives the onslaught of every minute detail to be photographed and mailed back to ur MSIL office, then the dealership is on right track....:)

Investing in a good digital camera is a super awesome idea if anyone is starting a new dealership. :)

Recruiting was fun.. and by Lord Balaji's grace i got a super readymade team on the first week of the rec. process.  Many technicians from gulbarga had migrated to other cities in search of work and when the new dealership was announced, they were happen to return back to native where the cost of living is super less and they r able to save some money.

MSIL Business Units : Pre-Owned Cars-True Value.. Maruti Driving School..Services..Bodyshop (denting and painting).. Maruti Genuine Parts and maruti genuine accessories...Sales are the strategic business units within a dealership.

Every SBU has own set of rules set by the company and every Territory Sales manager thinks that the dealer is neglecting his dept, not achieving the targets, lacks in Human resources personnel etc. ... handling many such TSM's makes a dealer CEO definitely go bananas!!! :P

Diesel cars, their waiting period and customers baying for dealers blood :)

Swift is an iconic brand and product. i never got the reason of the mass hysteria it causes. Gulbarga customers are so funny.. they dnt knw why they want this car only..but they just knw they want it.. because, my neighbour/brotherinlaw/ uncle has it.. convincing a diesel engine customer that it wont suit ur requirements (if u dnt run a diesel car minimum 30-40 kms a day, then the maintenance and cost of car which is 1.5lk more than petrol will kill u )

waiting period concept is not understood by anyone here, they think we are manufacturing cars in our own workshop and hence i get to hear, dekhiye na madam, ek toh gaadi hoga stockyard mein :P :P

Every person in glb claims to be friends with my dad and begs for discounts. once, i had  fight with a customer over a body cover. some customers are exasperating without limit..


Bodyshop : when u see beautiful cars smashed up badly, u feel so sad and concerned about the people in it, are they safe or not...alive or dead etc? however, after this feelings wanes away.. the happiness of getting more business sets in :P :P mre the damage more the labour charges and parts consumption!! guess, business is business after all :P

Delivery of cars : you feel so happy when u see a customer taking delivery of his car and when he greets you with sweets and thnks for the perfect car delivery :)

My staff : blessed with super awesome staff at Lahoti Motors :) every one sticks up for one another and treat eachother like a family member. Regular parties are thrown by the mgmt and many team building exercises are done :)

In a nutshell, Selling cars isnt that profitable, but servicing is where the moolah is..:) but,jab tak we dnt retail.. no new cars in market...no new hits and accidents..no used cars.. it is a vicious cycle :)


MSIL dealer conference: We get accomodated in awesome 5 star hotels in exotic locations and 3 days of fun masti begins!! conference dozes us off.. but the cocktail night is super rocking... where a celebrity singer sings away to glory :)

My business in a summary... :) :)


8 comments:

  1. Feedback- Knowledgeable and interesting. Was looking for some more enlightenment on amount x and 2x..and estimated breakeven time..( if you have not intentionally skipped it ;) )

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  2. thank u nishant for writing back to me.. say we estimated 6 crore for making the showroom..it swelled up to 7 crore+ due to fluctuatng rates in cement,steel etc.. Also, time limit and labour issues arise during construction... estimated breakeven tme for any business is usually 3 years.. we are done with half of our breakeven journey...1.5 years :)

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  3. Nicely done! Your next post should be "10 Excuses Every Dealer Should Make To His Customer When He Is Out Of Stock Of Swifts" :)

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    1. thank u mama.:) do read my old posts as well.. written almost 3 years bck.. awesome idea for next blog..shall write it soon :) ! love ya!

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  4. good job...must be so exciting....

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  5. As in short to say is i am a part of this family and madam nice research. on MSIL

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  6. Every one knows very well that Maruti Suzuki is the leading automobile company to manufacturing a variety of feature car and bikes at cost effective price. Here, you sharing a nice summary on automobile business.

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    ReplyDelete