Eicher Motors, owner of the iconic Indian motorcycle brand Royal Enfield, has a long history of vehicle manufacturing in India. In 2008, the automaker entered into a joint venture with Volvo AB, a move designed to give the Swedish giant inroads into the lucrative Indian CV market, while challenging the dominance of other major local competitors that then controlled nearly all of the market for heavy trucks in the country.
As Eicher continues to cement its place in the Indian market, it is also looking to expand its footprint abroad, with the Gulf countries a natural choice. In 2013, Al-Futtaim Auto & Machinery Company (FAMCO) announced that it would be distributing Eicher products in the UAE through the launch of a new subsidiary, Pacific Machinery, marking its entry into the value end of the market.
However, the Eicher brand will still need to contend with its more established rivals in the UAE. Indian manufacturers in particular have had a stronghold in the staff and labour transport segment, and FAMCO now hopes to find a foothold with the launch of the new Eicher Skyline 66-seat bus.
“The Skyline is very different to the old bus, and a lot of that was driven from our salespeople talking to Eicher about the demands of the market,” explains Frank O’Connor, managing director – UAE at FAMCO. One of the key requirements the dealer insisted on for the UAE market was that the buses be equipped with air conditioning. This was vital, since A/C buses are not the norm in the UAE’s labour transport segment despite the country’s sweltering summers, O’Connor adds. While the A/C isn’t fitted in India, the bus is brought in with the ducting and piping ready, and the power pack and compressor for the A/C is fitted locally.
All the buses being imported are ready to be equipped and sold with air conditioning, he notes. “And we don’t have to do that, we can bring it in without to compete on price, but we don’t choose to do that. We’d much prefer to sell a bus with air conditioning. Ethically, it’s correct.”
Another way that comfort is enhanced on the Skyline bus is through high-back seats, which are more comfortable than those typically found in the labour buses on the UAE’s roads. The combination of air conditioning and high-back seats allows the bus to be used for transporting office staff as well, not just labourers, O’Connor points out.
The Skyline bus is powered by a 4.9L six-cylinder engine, with a maximum power of 170hp at 3200 rpm and torque of 550Nm at 1350rpm. It is equipped with a five-speed manual gearbox and power steering, and comes with front and rear shock absorbers.
While Skyline buses have been in operation for the past six to eight months, the bus was only officially launched in June. Feedback thus far has been excellent, O’Connor says, particularly from drivers with regard to the clutch operation and steering.
Although the new bus has been upgraded from previous models in terms of exterior styling and comfort, the technology has remained simple. The actual chassis hasn’t undergone any modifications, but remains robust as ever and able to tackle off-road conditions as well, given that Eicher vehicles are built to handle Indian roads and conditions.
“It really is a very mechanical driveline. We don’t want to over-complicate it, but we want the people on-board to feel the benefits. If you took a labourer off the bus he’s riding around in today and put him in this one, he’s going to feel the difference.”
Redefining value
Commenting on FAMCO’s plans for the overall Eicher brand, O’Connor says the company wants to change the way value customers are perceived and catered to. In fact, a better sales and after-market offering for value products is how FAMCO hopes to differentiate itself in the segment as it looks to increase Eicher’s market share in the UAE, he notes.
“We want to change the way value products are developed and supported in the market, and that’s the differentiator for us really. All around the world, products are becoming more and more similar, and a lot of them have exactly the same components being bolted on. It’s what you do after [the sale] that’s the big difference.”
But while it sounds great on paper, how exactly does FAMCO plan to cater to value customers? O’Connor emphasises that the sales approach is different for value and premium customers.
“What I don’t want is our sales teams going out there and selling two different types of products in two different ways. So the front of the house, the sales needs to be separated because the sales approach is different,” he argues. This was the rationale behind launching a separate subsidiary to handle value products.
“When you’re selling a premium product, a very small percentage of your conversation would actually be around the price of the vehicle, because you would talk about whole life cost and residual value. When it comes to selling a value product, generally it is price-driven. But we’re looking to change that going forward.”
And how the company plans to change this is by encouraging customers to think of total cost of ownership and maintenance – factors not often considered when buying value products. “We talk about service contracts during the sales negotiation. What we’re trying to do is talk to the customer even before they’ve purchased to make them think about more than the purchase price. That’s something we’re pushing, we’re trying to change the mind-set within the market.”
Once a customer has purchased a vehicle, however, the after-market and financing support will be of the standard FAMCO is renowned for, regardless of whether it is a value or premium product, O’Connor says. Through its network of five depots across the UAE, the company is well-equipped to take care of the maintenance needs of Eicher customers. Financing support will also be offered to customers, though they don’t typically require financing in the value segment, as most purchases are made in cash.
Going forward, O’Connor is confident that Eicher vehicles, in combination with after-sales support from FAMCO, will hold their own against competitors. “The product is every bit as good. And that’s why we’re focusing so much on the soft offers, where we talk about contracts and finance and network for supporting the vehicles around the UAE. That’s what we can do to enhance the ownership of these vehicles compared to the competition.”