Car maker-dealer teams are super important in the car business. But in India’s fast-moving market, these teams are feeling the pressure. Things like changing rules, cost issues, and customers wanting different things are all adding to the stress.
What used to be a simple supply-and-sales setup now needs way more teamwork, honesty, and getting on the same page with tech.
To see what makes these teams last, we talked to J.K. Menon, who’s been in the car game for over 40 years, working on business plans, saving costs, and managing partnerships. With his experience in car parts and car maker networks, he shares what it takes to build trust, manage costs, and line up plans for the future.
Read on for his thoughts!
Q1. With your extensive experience in leading car businesses, what’s the biggest hurdle for maintaining strong car maker-dealer relationships in India?
The biggest issue revolves around managing inventory at the dealer level. Getting inventory right is crucial for car makers to maintain hassle-free production schedules. Stability at the dealer level helps everyone else in the chain, including suppliers.
Dealers already account for seasonal peaks and dips in sales. Yet, events like sudden tax changes have led to piles of unsold cars in the past. Car makers and dealers need closer collaboration to foresee these changes and tackle problems early, which in turn protects profits.
Q2. With the current emphasis on cost savings, what should car makers and dealers prioritise to protect their profitability without sacrificing the customer experience?
We need to think about value-driven engineering and customer-centric design. Cutting costs shouldn’t equal cutting corners. Instead, the focus should be on design innovation and developing clever ideas.
Car makers should seriously listen to dealer insights and customer feedback. This way, they can create products that are genuinely wanted. By doing so, every rupee spent brings real value, turning into cars that are priced right, reliable, and aligned with customer needs.
– J.K. Menon(Retd.) Executive Chairman, Sunbeam Lightweighting Solutions
Q3. Joint projects have played a big role in the growth of India’s car industry. What lessons from managing these projects are still relevant today for car makers and dealers?
The main lesson from successful joint projects, specifically from working with Japanese firms, is the importance of being organised and thorough. Success comes from rigorous planning, a dedication to quality, and making sure everyone is on board.
If India wants to establish itself as a world-class automotive hub, we need to adopt these standards, achieving global benchmarks in quality at a reasonable cost. The key is to combine these methods with India’s agility and adaptability.
Q4. Many dealers express that current digital systems don’t really align with on-the-ground realities. What’s one thing these systems need to do to truly improve the situation?
Digital systems need to become real platforms for communication. Currently, they function mainly to provide car makers with reports, often ignoring the dealer’s viewpoint.
For these tools to be useful, they need to offer support to everyone involved, enabling teamwork, quick problem-solving, and open data sharing. The aim is to foster trust, not just generate more paperwork.
Q5. What can car makers, dealers, and tech companies do together to create a system that supports everyone’s competitiveness and boosts customer happiness over the long term?
Modern AI has the power to transform current operations. With sharp data analysis, car makers can better manage production, anticipate customer demand, and handle spare parts more efficiently. This reduces both costs and waste.
When digital tech ties everything together, from the factory floor to the customer’s hands, the entire system becomes quicker, more reliable, and more sustainable.
Wrapping Up
According to J.K. Menon, strong car maker-dealer partnerships need more than just efficient operations. They need shared accountability, open dialogue, and a unified vision.
Smart inventory handling, value-driven engineering, and data-powered collaboration are essential to this new approach. By using digital systems that empower everyone and applying AI for smarter planning, car makers and dealers can grow from being mere business partners to true allies built on trust and adaptability.
About The Expert
With over 40 years on the job, J.K. Menon has been a big shaper of India’s car scene. He’s worked on everything from business plans and joint ventures to building cost-effective operations that match global standards.
His insight into car maker-supplier-dealer relationships lets him advise groups on lining up plans with action, mixing tech with real-world sense, and building systems that last into the future.