Tier 2/3 Dealership Realities: Building CRM/DMS Systems Dealers Actually Use

Big tech rarely fits small dealerships. Shalabh Rajvanshi shares why Tier 2/3 networks need simpler, localized solutions and how OEMs can truly support them.

Shalabh shares expert insights on Tier 2/3 dealership realities
Running a Tier 2 or Tier 3 auto dealership comes with unique challenges, tight budgets, small teams, and tech systems that often feel like they were built for bigger players. CRM and DMS platforms promise efficiency, but for smaller dealerships, they can feel clunky, disconnected from local needs, and hard to adopt. Add in the pressure of aligning with OEM expectations, and it’s easy to see why many dealers feel stuck. To know more on this, we spoke with Shalabh Rajvanshi, AVP at Chola Finance and Investment Limited. With years of experience in the industry, Shalabh knows what makes smaller dealerships tick and how OEMs can better support them. We asked him about the gaps in current systems, practical solutions, and the keys to stronger OEM-dealer partnerships. Here’s what he had to say.

Q1. From your perspective, why do current DMS/CRM systems struggle to deliver real value in Tier 2/3 dealership environments?

Current DMS/CRMs struggle in Tier 2/3 due to poor fit with local workflows, weak offline readiness, skill gaps, limited integration with local channels, and OEM-focused design. Patchy connectivity, lack of training, and high customisation costs further limit adoption, making systems feel burdensome rather than empowering for daily dealership operations.

Q2. What’s one manual process in post-sales that, if digitised well, could create the biggest impact?

In Tier 2/3 dealerships, digitising service follow-up transforms manual, inconsistent reminders into automated, local-language outreach with real-time booking and retention dashboards. It boosts customer loyalty, safeguards profitable service revenue, and enables upselling, turning a person-dependent process into a predictable, high-ROI engine for sustained post-sales growth.

Q3. What are some red flags you’ve noticed when OEMs overlook the dealer’s on-ground realities?

Ignoring on-ground realities leads to unrealistic targets, generic campaigns, tech mandates without infrastructure, cash flow strain, KPI mismatches, and no feedback loops eroding dealer trust and crippling even well-intentioned OEM initiatives in Tier 2/3 markets.

Stronger OEM–dealer collaboration needs co-designing initiatives with dealers, aligning KPIs to mutual profitability
– Shalabh Rajvanshi

Q4. In your experience, what kind of tech support actually works for smaller dealerships, especially those with lean teams?

Effective tech support for lean dealerships is WhatsApp-first, offers quick remote fixes, periodic on-ground training, micro video guides in local language, offline-capable systems, and a named support contact minimising friction and ensuring consistent adoption.

Q5. If you had to list your top three principles for making OEM-dealer collaboration stronger, what would they be?

Stronger OEM–dealer collaboration needs co-designing initiatives with dealers, aligning KPIs to mutual profitability, and maintaining structured two-way communication, ensuring trust, shared goals, and actionable insights that drive sustainable growth for both parties.

Wrapping Up

Shalabh Rajvanshi’s insights highlight a clear path forward for Tier 2/3 dealerships struggling with CRM/DMS systems. The way forward isn’t just pushing tech for tech’s sake but focusing on what actually works on the ground. For example, digitizing service follow-ups can boost both customer loyalty and revenue, but only if the technology is easy to use and backed by real, hands-on support.

OEMs can’t just drop a system on dealers and walk away. They need to build solutions together, listen carefully, and align their goals. When dealers and OEMs collaborate from the start and stay connected, they turn frustrating tech headaches into chances to grow and improve. It’s about trust, teamwork, and acting early, not waiting until problems pile up. That’s how real progress happens.

About The Expert

Shalabh Rajvansh Associate Vice President at Cholamandalam Investment and Finance Company, leads sales and marketing for two- and three-wheeler financing, driving 6% ROTA and strong portfolio growth. With 10+ years in automotive and financial services, he has delivered ₹1,400 crores in revenue growth and pioneered dealer development initiatives.

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