Shell Lubricants to offer engine warranty to used cars to lure customers

Shell Lubricants India plans to launch an engine warranty scheme for the pre-owned cars of its loyal customers. It started piloting the project as the demand is rising for the used cars after COVID-19 outbreak, which forced people to reduce the use of public transport and taxi services.

Shell is working with a global team to launch the programme to give peace of mind to the used car buyers, Raman Ojha, Country Head, Shell Lubricants India told BusinessToday.In. The programme will be called Shell Helix Engine Warranty. "If the customers use Shell Ultra/Shell Helix Ultra/Shell Advanced Ultra engine oil for six months regularly, we will be willing to provide them engine warranty," said Ojha.

Shell will create an Ultra club and monitor engine performance of the used cars. They are in the middle of working out a model to launch the scheme by end of the year. The used cars usually don't come with engine warranty.

Shell is focusing on care, continuity and cash to return to normalcy and gain market share in the post-COVID-19 phase. "We focus on care for employees, customers and society at large. However, we also need to ensure that the business continuity is maintained and cash is there in the system. The businesses which will struggle to generate or maintain cash can come under severe pressure in these difficult times," said Ojha.

Shell offered Corona Kavach insurance policies to all its employees. It maintained staff strength and their compensations despite the slip in business, he added.

Shell supported the mechanics' community, who are badly hit by the outbreak, by providing rice and pulses. It carried out truck and ambulance relief camps for providing basic support to truckers and drivers. It has also reached out to distributors and the salesforce with financial aids.

"We realized that passenger car customers are reluctant to go to the workshops because of safety and sanitization concerns. So we launched a safe sanitized zero-contact doorstep car services ecosystem in partnership with Pitstop. For the motorcycle consumers, we launched doorstep services, called Shell Hoopy," he said.

Shell's business has almost reached pre-COVID-19 levels, said Ojha. "So we want to launch Atma Nirbhar mission to create 5,000- 10,000 entrepreneurs in the mechanic community, helping them to open workshops, including Shell Pitstop mobile services. We are also trying to create entrepreneurs in the motorcycle/two-wheeler mechanic community," he added. Shell will invest in workshops with toolkit, ramps and branding. It will also help the mechanic to advertise online. Shell has over 40,000 mechanics in its community.

During the lockdown time, Shell helped 100 mechanics to set up their workshops. It is also funding for the vans to set up mobile service stations. Ojha's dream is to empower 10,000 mechanics to set up workshops in the next 12 to 18 months.

Lubricant industry will degrow this year and next year compared to 2019. But the company expects to outgrow the market. "The companies close to the consumer and understand the retailer's needs have gained volume in this turbulent period. The companies which are rigid to change have lost market share," Ojha added.

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