In bid to expand its footprint and address opportunities in emerging markets, Chennai-based aftermarket service provider TVS Automobile Solutions (TVS ASL)
01 Jul 2015 | 4213 Views | By Kiran Bajad
In bid to expand its footprint and address opportunities in emerging markets, Chennai-based aftermarket service provider TVS Automobile Solutions (TVS ASL) announced that it would hive off its Roadside Assistance business (RSA) to form a new joint venture company TVS Auto Assist (India) with The Automobile Association (AA), UK.
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In bid to expand its footprint and address opportunities in emerging markets, Chennai-based aftermarket service provider TVS Automobile Solutions (TVS ASL) announced that it would hive off its Roadside Assistance business (RSA) to form a new joint venture company TVS Auto Assist (India) with The Automobile Association (AA), UK.
The 51:49 percent JV between TVS ASL and AA will offer not only breakdown services (2- and 3-wheelers, cars, CVs and LCVs) to customers but also expand operations with OEMs, insurance companies and corporate customers in India in emerging markets in Asia, the Middle East and Africa. The initial investment in the JV will be nearly Rs 100 crore while the targeted turnover will be Rs 500 crore in the next 3 years.
Announcing the JV, R Dinesh, director, TVS Automobile Solutions, said: “TVS is the pioneer in providing breakdown services in India. Our partnership with AA will further modernise our offerings in India and expand to other emerging markets. With this JV, we can provide a similar service experience to multinational automobile brands present in India as well as in other emerging markets.”
AA has an over 40 percent market share in the UK and over 15 million customers in the RSA business. The company attended to 3.5 million customers in the UK in 2014, translating into 10,000 customer services per day. It offers a variety of products and value added services besides its Roadside Assistance services that include insurance and driving services.
Bob Mackenzie, executive chairman, AA, said, “We are entering the Indian market at a time when its automobile growth is set to take off and are confident of the JV with TVS. We will bring our global expertise to the roadside assistance business, which we expect to transform into a holistic business centre to customer.”
TVS RSA business has an infrastructure presence across India covering 1,795 locations and 28 states with a network of over 4,000 authorised service providers (ASPs).It provides cover to over a million customers and attends to 100,000 breakdown services in a year.
The company has over 1,000 tow trucks for patrolling and towing operations. TVS RSA service offerings include emergency breakdown (mechanical and electrical), flat tyre assistance, key lock-out services, cab assistance, fuel delivery, patrol and towing assistance.