myTVS forays into quick commerce delivery segment for automotive parts; plans to reduce supply chain cost by 30%, ET Auto

This model expands the company’s supply chain partnerships with existing retail network and leverages existing myTVS digital catalogue to reduce the inventories of the dark stores.myTVS, a part of TVS Mobility Group and a brand of Ki Mobility, has forayed into the quick commerce delivery segment for automotive parts and lubricants for passenger and commercial vehicles. India’s leading digital automotive aftermarket platform, myTVS, has robust expansion plans with its entry into the quick commerce distribution segment under the brand name of myTVS Hypermart.

“We are very confident that by next year we should reach 2,500 service networks… and then customers will have the digital convenience of accessing transparent pricing, parts, and quality,” said G Srinivasa Raghavan, managing director of myTVS, during a press conference.

This inclusive model expands the company’s supply chain partnerships with the existing retail network and leverages the existing myTVS digital catalogue to reduce the inventories of the dark stores. Deliveries to retailers and other partners will be completed within two hours of placing the order, said Raghavan.

With a diverse catalogue containing over 12 million parts, this initiative aims to tap and organise the struggling automotive aftermarket by providing quick delivery, eliminating inventory concerns, and resolving issues with counterfeit parts in the market. To achieve this, the company has decided to set up a standardised and central supply chain network, Raghavan added.

myTVS expansion strategy

The company aims to expand its current supply chain and reduce costs by 30% through partnerships with retail networks, garages, and manufacturers. “myTVS supply chain cost will go down by 30% in the next two years,” added Raghavan. The company already has 22,000 retailers and 30,000 garages operational across India.

myTVS is also targeting strong annual growth, with up to 30%-35% compound growth this fiscal year. “We doubled our business every two years. We believe we will continue this 30%-35% growth, while the industry is growing at 5%,” added Raghavan.

The company, which recorded INR 1,900 crore in revenue for FY24, is aiming to expand the country’s vehicle-park coverage from its current 4% to 10%-12% in the next two years.

myTVS will initially establish 50 dark stores branded as myTVS Hypermart by March 2025, starting in Tamil Nadu, Kerala, Maharashtra, and Gujarat. It also plans to incorporate 200 more stores nationwide. “We plan to roll out 250 dark stores across India in the next three years,” he added.

Supply Chain as a Pipe model

Moving from a ‘business-to-consumer’ model to a ‘business-to-business’ model, the company’s myTVS Hypermart supply chain operates in the form of the Supply Chain as a Pipe model. It introduces a consignment inventory system at partner stores, which allows them to focus on the company’s growth without the need to hold stock as inventory.

Raghavan explained that this model was a great success during their three-month pilot phase, achieving profitability per store and superior returns for partner retailers.

myTVS currently operates with over 1,000 service centers and has more than 10,000 vehicle fleets. To broaden its current portfolio, the company aims to collaborate with more than 25 vehicle manufacturers, 100 part manufacturers, and 20 insurance companies. myTVS delivers predictive, intelligent, and cost-effective vehicle management solutions through its super app.

• Published On Dec 19, 2024 at 08:08 AM IST

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