According to recent report, In USA, there is still 75% of aftermarket auto repair is performed by independent auto repair shops while 25% of the business lives with dealerships.
The average length of vehicle ownership for new and used vehicles has increased 60% in the last ten years. Although Americans may be buying newer vehicles, don’t let these numbers fool you into thinking the aftermarket is stagnant or declining. Older vehicles are simply lasting longer.
Today’s consumers are keeping their vehicles longer and are more aware of the importance of preventive maintenance and scheduled servicing to maximize the lifetime value of their vehicles. This rising demand for aftermarket parts and services is spurring new growth and revenue opportunities for a wide range of businesses operating in the automotive aftermarket industry.
In India, even there are many startups are trying to build Brands to disrupt the aftermarket, MeriCAR.com, which is first in India and recognized as Unique Business, is creating marketplace disruption in every city of INDIA. The team has recently made presence in Pune, Ranchi, Nasik and 35 cities under Partnership Programs to help small garages.
The venture is the first in India, twice funded and is planning for Series A funding from Singapore, Hongkong, Japan and top investors from USA.
Car Technology is becoming complex. Senssors, IOT based technologies are making after-sales difficult. OEM Dealers have no cheaper solution for services and there are few independent workshops.
The Luxury and Premium Cars companies find it tough to compete in the aftermarket. Across industries, delivering after-sales services is more complex than manufacturing products. When delivering service products, executives have to deploy parts, people, and equipment at more locations than they do to make products.
An after-sales network has to support all the goods a company has sold in the past as well as those it currently makes. Each generation has different parts and vendors, so the service network often has to cope with 20 times the number of SKUs that the manufacturing function deals with. Businesses also have to train service personnel, who are dispersed all over the world, in a variety of technical skills. Moreover, after-sales networks operate in an unpredictable and inconsistent marketplace because demands for repairs crop up unexpectedly and sporadically. On top of that, companies have to handle—in an environmentally safe fashion—the return, repair, and disposal of failed components.
Most companies either don’t know how or don’t care to provide after-sales services effectively.
In India, the number of old premium cars completing their warranty periods is much more than new ones (ET). Mercedes enters pre-owned car business in India (ET). Car owners use OEM dealers only because of servicing high-end luxury cars need special training and genuine spare parts are not easily available in India.
Multibrand workshops which caters to premium cars servicing are just few, one of them is European Motors Workshop. It has great setup with international facility. Over 25 years of technical experience & dedication to customer satisfaction with Mercedes-Benz, they are located at Gurgaon and provides luxury car servicing in New Delhi and NCR. Recently Carnation has started offering similar service and tie-up with Italian firm’s for luxury car auto parts.
Servicing premium and luxury cars, BMW, Mercedes, Audi need specific trained staff and with international standard facilities and availability of genuine spare parts.
To be successful for this offering, multibrand workshop needs to arrange spare parts and importing from other countries. European Motors Workshop is equipped with state of the art machinery selected from renowned brands from around the world.
In India, Car Manufacturer are not finding easy way for survival.
Auto Market is tough for scale. Recent news of General Motor exits from India and others brands VW, Ford area also under pressure (according to ET).
They states reasons are pricing and profitability. Among Indian players, Maruti with major share 47% in the market is trying hard to lure the customers and Tata Motors ‘s recent decision on running flatter hierarchy organization. These are signals of the tough competition and major changes in auto market scenario in India.
Recent news of Tata Motors, India’s largest automobile company by revenue, has decided to make flat hierarchy and decided to remove designations. The car manufacturer want to establish an environment in which teamwork-inspired creativity can flourish.
Designation matters for everybody but level of hierarchies delays the decisions, that is the only reason Startups always scale faster than corporate in EARLY days and become big.
There is no surprise if Tata Motors build culture like any successful startup as Mr. Ratan Tata, chairman of Tata Group, has already experienced by investing into 25 startups.
Bosch Car Service is one of the largest independent workshop chains worldwide. International service network offers more than 16,500 certified workshops in 150 countries. The core services are maintenance and repair for all vehicle brands. They believe in giving training to the experts.
Watch this interesting video to know “how they believe in training Bosch Expert”
In India, Bosch Automotive Aftermarket Division is responsible for the supply, sales and distribution of automotive parts for vehicle servicing; diagnostics equipment for workshops (i.e. testing equipment), technical information, training, and consulting; and technical after-sales service for Bosch automotive products and systems.
Bosch India has over 5,000 outlets , spread across 1,000 cities and towns and also manages over 2,100 Workshop / Service network comprising over 500 Bosch Car Service, 1,000 Bosch Diesel Service Centres, 500 Electric Modules & 100 Express Car Service in India.
These centres provide highest quality of customer service and solutions to the vehicle owners. Two new workshop concepts “Express Car Service” & “Express Bike Service” have been added to the network. There are 15 Bosch Training Centres in India, which offer training to customers on both technical and commercial aspects.
ACMA Automechanika New Delhi is india’s first ever trade exhibition held at New Delhi from 8th to 10th Feb 2013. The Automechanika is specialized and dedicated to the auto-component aftermarket.
Apart from companies product display, the seminars were eye opener for audiences with topics on trends and regulations of aftermarket. The focus on the booming opportunities and learning’s for India from trends in the world’s developed aftermarkets.
JD Power Asia Pacific, MD, Mr Mohit Arora suggested focusing on importance of “end customer” that still lacks in the industry. The debate on OEM’s change of mind set to control auto component sales were highlights during seminars. The panel discussed about “Right to repair” act which does not exist in India. Ernst & Young presenter Mr. Rakesh Batra highlighted in his presentation about the opportunity to focus on opportunities for “unorganized” car workshops. PAE representative replied to audiences’ question about the use of ecommerce for spares at retail which he thinks is still at early stage to explore it. Mr Arun Dey from Reliance Autozone highlighted potential of retail in car accessories.
Improving the Auto components value chain and cutting costs – Lessons from China were more topics for discussion in the seminar.
ACMA would definitely bring change in the Indian aftermarket Industry and facilitates worldwide trends.