Carmakers will no longer make warranties by authorised dealers only

According to news, European Union officials rules covering the car sector could make it easier for consumers to use independent repair facilities rather than authorised service station garages (Source: FTP.com)

In Europe, this rule benefits more to customers having more choices for car servicing while they can get spare parts easily available at independent repair center. It would enforce more competition and reduce maintenance costs. During few years, repair costs are increasing because of many factors.

In India, OEM service dealers are authorized to do servicing during warranty period and car owner has no choice other than car maker authorized car dealer. There are many un authorized road side car workshops, they cater to 60% of car owners after warranty expired. Spare parts are not easily available and multibrand workshops have major problem sourcing it, as OEM supports authorized service stations. Similar rules in India can benefit car owners when they have more choices.

Source: FT.com