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