Mercedes Used Cars and Servicing at Multibrand Center are latest trend in India (ET)

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 Motor Works 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.

According to news there are 25000 units annually and 25% in New Delhi and NCR.

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.

Car Servicing in India – Huge Gap in the After Sales Market

The car servicing market is unorganized in India. The car servicing market includes authorized service centers of vehicle manufacturers, some organized service centers, and roadside mechanics.

OEM dealers, Authorised service centers ASC (set up by vehicle manufacturers) are popular for providing good infrastructure like customer waiting rooms, clean workshops areas, trained mechanics, proper tools and equipment needed to perform repairs, genuine parts and transparent billing.

On the other side, roadside mechanic use spare parts openly available in the aftermarket that was cheaper compared to genuine spare parts. Mostly spare parts manufacturers that supply to car manufacturers sold the same spare parts in the open aftermarket. It has created competition.

Authorized service station charge heavily because of their infrastructure and labour cost and road side workshops charge less. Customer search for other cheapest workshops when their car warranty gets expired.

Many corporate like Bosch, Mahindra, TVS, Castrol, Mobil1 are opening their authorized service stations in India. Bosch has over 260 Bosch Car Service, Mahindra First Choice Services has 7 multibrand car workshops. Carnation has setup 12 hubs all over India in major cities.

There is transformation from OEM dealers, ASC and road side mechanics to organized authorized service centers. The factors that are driving this transformation are increasing car population, dominance of the unorganized segment and the ever-increasing gap between customer expectation and fulfillment.

Source: Frost.com

Multi-brand Car Servicing Business In India – Unorganized, Estimated Rs. 20,000 Crore (TOI)

According to the news, multibrand car servicing business is unorganized and mostly roadside workshops in India. There is a huge potential of car serviceing business which is estimated Rs. 20,000 Crore (Source TOI)
Companies like Mahindra and Mahindra, Bosch, Castrol, Carnation, started opening authorized multi brand car workshops.

Mahindra currently has seven multi-brand service outlets, and has plans to open 450 car workshops in the next three to four years. Bosch Car Service are 260 and plan to open 700 outlets. Carnations has 15 outlets all over India.

In India, car population is rising and car dealerships cater to respective brands. More and more car brands are launched, there is a need to organize this sector by providing support for sophisticated technology to car workshops.

Different companies have different way of expansion and mostly are franchisee based. Maintaining quality services for franchisee model is not easy.

For more detail of news read: http://timesofindia.indiatimes.com/biz/india-business/MM-to-push-car-service-biz/articleshow/5566497.cms

The Car Workshop Uses a Multibrand Strategy Earn More $$$

The car workshop owners who use a multibrand strategy develop more business than others who are single brand authorized one. Recently i visited to a multibrand workshop who has large space and has authorization from Castrol and Bosch. Castrol India is establishing network of pit stops to add value to car owners with “preventive maintenance” products. Bosch India is a leading supplier of technology and add values to customer with “spare parts” and train mechanics for the technology.

Servicing multiple brands enable car workshops to give choices to car owners with quality products and respond to consumer demand for new brands.

Multi-brand service centres have a significant presence in developed economies, but you can see recent trends in India. It has been noticed that car owners look for alternative after the warranty period. Even the spare parts cost remains the same, but labour cost cheaper than OEM service centres.

According to the report – The Hindu, the multi-brand car service market is estimated at about Rs 13,500 crore with 6.5 million cars and current volumes, vehicle manufacturers who service the cars during two-year warranty period will have to maintain about 2.5 million cars during the warranty period. (Read more -Report – The Hindu)

Multibrand Car Workshops in India – a huge opportunity

Multi-brand service centres have a significant presence in developed economies, but you can see recent trends in India. It has been noticed that car owners look for alternative after the warranty period. Even the spare parts cost remains the same, but labour cost cheaper than OEM service centres.

The multi-brand car service market is estimated at about Rs 13,500 crore with 6.5 million cars. Going by current volumes, vehicle manufacturers who service the cars during two-year warranty period will have to maintain about 2.5 million cars during the warranty period. (Report – The Hindu)