The Multi brand car service market in India will continue to grow at a remarkable pace in the coming years with increasing used car sales, expanding networks of service centers to tier 2 and tier 3 cities and high quality of services at low prices. It has been estimated that the market will cross INR 370 crore by 2020 in terms of revenue earned. Since, trust remains an important concern while getting car service done at a local car service workshop, the multi-brand service companies are targeting this uncertainty in the unorganized domain as their target area. Organized multi brand car service companies such as Carnation, MyTVS, Mahindra First Choice Services, Bosch Car Services and few others are targeting to improve the customer experience by offering them better services which can develop trust coupled with economical service packages.
Multi brand car service market in India poses an opportunity though with challenges since the share of multi brand car service in overall car service market has been witnessed at around 1% during FY’2015. In comparison with developed markets such as Europe and US where the share of multi brand car service is around 33% estimated in 2015. The market is currently dominated by organized authorized OEMs workshops and independent small garages. The post warranty vehicle (>4 years) service market was mainly captured by small independent local garages while before 4 years, car owners usually get their cars serviced from authorized dealers. The multi-brand car service chains have positioned themselves in between these 2 segments leading to greater competition from both the market segments.
However, there are certain market challenges that are faced by the multi brand service providers such as procurement of spare parts. Procurement of original spare parts has been the major hindrance to the development of multi brand car service market in India. Majority of the OEMs supply their spare parts only to their OEM car network, with the major objective to constrain the growth of local and multi brand car service outlets.
According to an industry veteran, “The companies can enter into various business and strategic alliances in all facets of its business. A company must have a vast network base of OESs dealers which provides them on demand spare parts in no time.”
“Until now, there has been no established business model for success of these service providers. An ideal business model should be the combination of CoCo and FoFo service centers which can help the company to maintain their cash flow while extending their network presence in different regions through franchisee.” according to the Market Research Analyst, Ken Research.
The report titled “India Multi Brand Car Service Market Outlook to 2020” provides detailed overview on the Multi Brand Car Servicing Market and helps the reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, service center owners and managers, new players venturing in the market and other stakeholders to align their future growth strategies according to ongoing and expected trends in the future considering the recommendations and insights given in the report.
For more details visit : https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/india-multi-brand-car-servicing-report/10745-100.html