Recalling of RX Series

PRESENTED BY:

Abhinaba SenAnirban GhoshArjun PRAvishek SingalDheeraj RaneKrishnan Sethumadhavan

Agenda

Our journey so far

Our Rx Series

Our decision to recall

Consequences of recall

Proposed recall plan

Your role in recall

Way forward

Our journey so far

Achievements Safety car of the year (2007)Luxury car of the year(2011)

Partnership historyStarted with 3 partners, now we have 30

partners added to the sales fleet Past sale records

Series Year of launch Number of units sold

RS 2007 2432

RT 2009 1673

RW 2011 1982

Continued…

•Market Share

DMW26%

Zercedez23%

Taudi30%

Baguar16%

Others5%

Continued…Market share –

DMW Zercedez Taudi Baguar Others

No of units sold 6087 5376 7123 3625 1236

500

1500

2500

3500

4500

5500

6500

7500

Our Rx Series

• DMW RX Series Total units sold – 2348 Booking Schedule-

- 273 cars in the pipeline

•FeedbackCustomer response – Highly appreciated

Quality Control Team feedback- Glitch Detected

Our decision to recall

Need for RX series recall To ensure customer safety

Cannot afford to jeopardize customer relation due to safety issuesCannot compromise company’s vision on safety

To ensure stringent quality standardNever been in the bad books of SIAM (Society of Indian

Automobile Manufactures)

Never been criticized by any auto magazine for technical issues

Consequences of recallEffect on brand value

Credibility at stakeRetention of customers – a challenge

Impact on sales Deferred Car deliveries

Advantage to competitor Increased sales for rivals

Financial Particulars Per Unit Cost Total Cost

Repair Cost 2500 58,70,000

Labour Cost 500 11,74,000

Reverse Logistics Cost

360 8,45,280

Advertisement Cost 40,00,000

Total 1,18,89,280

Proposed recall planWhere do we start ?

o Phase I : Immediate Entrapment solution

Continued…Phase II : Installing the reinforcement

bar

Continued…Phase III : Installing reconfigured pedals on

unsold cars

How do we execute these phases successfully ? Initiate Phase I across all cities by September 16, 2013

Inform customers via various sources (T.V, Newspaper etc..)

Deploy needed workforce to complete phase I by a weekTrain the mechanics about phase II repair Install the precision cut steel reinforcement bar in existing

pedals

ContinuedLaunch Phase II & III simultaneously on 23rd

September 2013Carryout 5 “recall-repairs” ( Phase II ) , a day

per channel partnersSend the faulty pedals of unsold cars, back to

warehouseReplace the pedals with reconfigured pedals

(Phase III)

Complete both the Phases by 4th November

2013

Continued… Territory wise recall plan

Continued…

How do we regain the customer’s trust ?Enhance customer support

Special recall Support TeamNew web page for recall related query & latest

announcementsExclusive helpline

Special number with expert opinionDoor step service

Free pick up & deliveryProvide free service check ups & extended

warranty1year of free service check ups1year extended warranty from the day of service

Your role in recall

Informing customers as per schedule – Executing the service/Part replacement –

Get the work force trained Get the repair work done quickly

Dealing with customer grievances Set up a grievance cell and appoint skilled force

to look into customer grievance.

Tracking record of customer feedback

Way forward

Improved quality control process Rigorous inspection by the quality control team to

ensure none of these glitches happen again. Advanced “Brake Over Ride” mechanism in all

models Installation of the latest technology in all models :

Enabling the car to stop if the accelerator pedal and brake are pushed simultaneously

Continued…Brand Promotion

Appoint new brand ambassadorPromote sales with new positioning

“Take seriously, accept humbly and respond sincerely"