David Pieris has earned ‘unshakable’ trust of Sri Lankans over 30 years, says its Group Chair

by Sanath Nanayakkare

The Sri Lankan automotive market is saturated with a number of established players. But one company stands out from the mix: David Pieris Motor Company (DPMC) – the indisputable game changer of passenger transportation in Sri Lanka.

In the late 1970s, the entire country woke up to the sound of Bajaj three wheeler produced by Bajaj Auto India which is designed and built to carry three passengers plus a load. The entry of this wonder vehicle marked the turning point in Sri Lanka’s mobility history.

Easy to manoeuvre, easy to move from point A to point B, and being reasonable in price, it opened the floodgates for equity and social justice by offering mobility for all, leaving no one stranded on the road or in their last mile journey.

Those who could never buy a decent mode of transportation rallied round the Bajaj three wheeler while those who rode on high-end vehicles also began to realise the value of taking the tuk-tuk to get things done without any hassle.

Today no one is judging the economic and social parameters of three-wheeler-users because it is not only used by humble passengers on the road but also by families, self-employed people, offices, government institutions and even corporates. The Bajaj three-wheeler has undoubtedly become a pleasant interruption rather than a disruption.

Although cars have been a display of wealth, success, and social status, three-wheelers do its basic function beyond expectations to the envy of everyone.

As a result, DPMC, the sole agent for Bajaj three-wheeler in Sri Lanka, has become the catalyst in breaking down the mobility barrier as well as the society’s traditional perceptions about passenger transportation.

“When we presented the three-wheeler as a family vehicle, it touched the lives of thousands of Sri Lankans making it possible for the first time for them to own an affordable, economical and convenient vehicle. It made them mobile while opening up a source of revenue through self-employment. It was this groundbreaking concept that led to DPMC becoming the largest automotive company in the country,” Rohana Dissanayake, Group Chairman/Managing Director of David Pieris Group of Companies told The Island during a recent interview.

“DPMC’s Manufacturing Complex in Ranna, Tangalle is Sri Lanka’s largest and very first conveyorised vehicle assembly plant. It is situated on a 23-acre land where motorcycles are assembled with 25%- 30% value additions through locally produced accessories in line with the government’s Standard Operating Procedure (SOP) at present,” he said.

“Although we are the clear market leader in Sri Lanka for both three wheelers and motorcycles, we have diversified the Group to reduce its dependency on a single market or product. In fact, we did so in the wake of the Covid-19 health crisis, the economic crisis as well as the ban imposed by the government on importation of vehicles,” he noted.

“Today, Assetline Finance Ltd., our own finance company provides financing solutions to many customers. These solutions are aimed at supporting SMEs, leasing of machinery and equipment and empowering women entrepreneurs who are not in a position to obtain financial services from banks because they can’t meet with the formal banking criteria,”

“We have commenced the conversion of three wheelers to EVs. Meanwhile, David Pieris (DP) Solar Energy, DP Racing and Leisure and DP City Development are other key areas we have entered into. We have deployed the best minds of each industry in this exercise. As a result, the diversification strategy has helped us weather the challenges faced by the automotive industry and continue our growth momentum without any interruption,” he said.

When asked how he felt about wearing the mantle of David Pieris Group Chairman/MD at a time like this, he said,” I find it challenging as the economy is running through difficulties, but any challenge would bring opportunities with it, and we should be able to identify them and harness them. Even at the peak of the challenging times, we were able to navigate through it to a great extent. When motorcycle and three-wheeler imports were restricted, we started assembling them in Sri Lanka. Today we assemble about 1,500-2,000 motorcycles under the local value addition programme which was introduced by the government. So, you see, we have been able to tap the opportunities arising from unprecedented conditions on the ground.”

“In 1994, we became independent from Richard Pieris Ltd when David Pieris bought this company through a management buyout. At the time, we had a workforce of about 194 people. Today we are happy to say that our Group employs about 1,700 people. We have sold almost three million two-wheelers and three wheelers to happy customers. We have provided four million direct and indirect jobs through this industry. Quietly yet unshakably, David Pieris Group has earned the trust of the people of this country over its 30- year journey.”

“To ensure customer satisfaction in our auto business, we have established about 1,400 Bajaj dealerships across the country. Bajaj is marketed in 72 countries and we are the only country where we have positioned this vehicle as a family vehicle. In rural areas, where transportation system is weak after the dusk falls , what’s available is a three-wheeler to commute or in any emergency where mobility is crucial. That’s the reality.”

When asked about the possible lifting of the ban on vehicle imports, he said,” If the ban is lifted, there will be a great pent-up demand for three wheelers and motorcycles. We are also working on getting down an electric three-wheelers from India. Our plan is to market electric three-wheelers coupled with a solar solution. That way, our products won’t be a burden on the national grid. We will be using our existing network to set up electric charging stations by selecting 300-500 points island wide for this purpose. We are also working on getting down an entry-level electric four-wheeler. It’s too early to divulge more details about it because the idea is still in the planning phase.”

“Our strength is our human resource. We always train our staff to be honest and straightforward in their dealings. We inculcate in them the full knowledge of the company they represent. We ensure that they have perfect knowledge of the products they sell. Only then they will be able to educate the buyers on the nature of the product, its utility, the materials used in production, and how and when servicing should be carried out, to make the best use of the vehicles and accessories they buy from us. Training our service dealers to be par excellence is also at the top of our mind. For instance, the female technicians from Jaffna that we trained free-of-charge are doing a great job in the northern part of the country, and today some of them have become technopreneurs.”

“Our spare-parts market share is in the range of 60%-70%. We have retained this market share for 40 years now and it’s no easy feat. Our customers are well aware that if they use inferior spare parts, their vehicles would be at the risk of unreliable performance. That many customers wouldn’t buy our spare parts if our prices were not affordable. More than we talk about our spare parts prices, just look at our market share. It speaks volumes. You can talk the talk about your great products or services or prices, but building customer trust means walking the walk.”

“Another reason we have become the industry leader is the efficient communication strategy we maintain with our sales dealers, spare parts dealers and service dealers. We make it a point to listen to them and take their suggestions and concerns on board. That way, we are all on the same page on what we do as a team.”

When asked if new competitors could enter the market in the future, he said,” It may happen because technology is evolving. Today we have gasoline engines. Next is electric. So there is a lot of space for many disruptions to happen. But as we see it, those disruptive trends will transform the industry, which is really good. The bottom line is; DPMC and our principles will also be keeping abreast of such breakthroughs to give the best to our customers,” Rohana Dissanayake said.

ONE THING STOOD OUT throughout this interview; David Pieris Group was not the complaining type though vehicle import restrictions are still in place. Their business is a labour of love for them. Instead of paying lip service to the idea of exploring new ventures for continued operational success and growth, they have actually embraced and implemented it against multiple uncertainties. What’s the end result? David Pieris has strategically picked up the slack on the balance sheet to go from strength to strength.