Scaling Dealer Networks and Operations Across Borders: Lessons from ASEAN and South Asia

Expanding into new countries can be tough. Rules change everywhere, customers want different things, and how fast you get started depends on how much partners trust you. Still, it’s worth the trouble. If you get the right partners, products, and ways of doing things, OEMs can grow quickly.

To figure out what works well, we spoke with Shantanu Srivastav, a Director at PT VECV Automotive Indonesia. He’s handled new operations and built networks in Southeast Asia, Bangladesh, and Sri Lanka. He’s dealt with approvals, getting factories ready, and dealer performance in tricky, rule-filled places.

Keep reading to see what he had to say.

Q1. You’ve managed expansion in many places. What are the most important things that help when setting up new dealers and distribution networks in new markets?

Start with a reliable partner. Pick a dealer who already trusts Indian brands or has worked with successful Indian companies. Sometimes, companies use their connections to European or Japanese firms to gain trust. Another way is the strength of India. Showing the factory, meetings with leaders, and introducing them to channel partners can be helpful.

You also need a product that’s right for the market. Spot a real need and meet it with a dependable product at a fair price. BYD, for example, gives people confidence and good value for electric vehicles at the right price. Royal Enfield did something similar in its market.

Q2. Complicated rules and approvals often slow down expansion. What’s the best way to follow the rules and still start quickly?

There’s no easy answer. Don’t just send a product made for your home market to another country without changing it to fit local driving habits, roads, loads, and terrain – it won’t do well. Have a solid introduction plan that includes local testing.

These four things are helpful:

• Careful market research: Talk to everyone early, including those who handle approvals and regulations. Get honest feedback from customers about load sizes and driving habits with different teams.
• Get ready at once: While waiting for certifications, get dealers ready, stock parts, and prep marketing. Don’t wait for approvals to be done to start the launch process.
• Follow regional rules: If you can, use ASEAN or SAARC standards and push for mutual recognition to skip repeated testing.
• Digitally track compliance: Watch every step closely. See compliance as something that helps you succeed, not something that stops you.

Q3. In fast-growing markets with few resources, dealer teams often handle many jobs. What can OEMs do to keep things consistent and efficient?

Make the important things the same, but let people make decisions locally. Create a simple process that captures the best ways of doing things, training, and certifying teams in short lessons. Make roles obvious, track important numbers digitally, and keep standard procedures simple.

Think about how franchise businesses stay the same even as they grow. Tools using AI and apps can help new teams learn quickly and improve how much they do each day.

Q4. Digital platforms and AI systems are making dealer tasks easier. Where do you see the biggest change for global launches?

Three things matter :

• Openness: Seeing real-time info on sales, service, and parts makes choices better. Customers want quick replies now. They want updates all the time. Tech makes this real.
• Speed: Digital steps cut out manual work, from routing leads to predicting parts needs. Even small changes help. If a part is in stock nearby, link with a local courier and get it there fast.
• Customer service: AI allows for personalisation. You can suggest the right model based on how someone uses it and guess service needs before a problem happens. People trust you when you fix things before they break.

Q5. What should Indian OEMs expanding globally learn from Southeast Asia and South Asia, while remembering local factors?

Southeast Asia isn’t just one market. Powertrain rules and driving habits have changed a lot. Japanese brands are known for being reliable. Chinese brands focus on price, features, and financing. Both gain from free trade deals.

Here are five things for Indian OEMs to remember:

1. Win on total cost: Focus on being efficient, lasting long, and having clear service costs. Add features that matter locally, like being connected, being safe, and having good AC for hot weather.

2. Make after-sales service better: Give different parts options for different budgets. Think about shared service centres with other brands to grow coverage and quality.

3. Fix financing: Build relationships with local lenders in the short term. Think about joint financing platforms supported by several Indian OEMs, like the Japanese do, in the long term.

4. Get local: Follow rules, lower duties, and build national pride by using local suppliers. This also makes it easier to respond quickly.

5. Know local rules: Use free trade deals, local content rules, and incentives to plan export hubs and tariff corridors carefully.

Pick markets with care, invest for a reason, and learn quicker than your rivals.

Wrapping Up

Growing internationally works best for those who get the basics right. Picking the right partners, changing products, and involving regulators early makes things happen. A clear process keeps things running.

Digital tools add openness, save time, and make service better. With the right cost, financing, and local supply chains, Indian OEMs can be confident in Southeast Asia and beyond.

About The Expert