24 Aug 2022
Changing market trends in Automobile servicing sector
The Indian Automobile industry is fourth largest among the globe and it contributes 7% to the GDP of the country. This sort of highly competitive and growing auto sector leads to an equally adaptive service and maintenance industry.
Automobile servicing companies are estimated to be around Rs 34,000 crore by the year 2020.The Indian car service industry can be divided into- the authorized ones, unorganized local garages, and the multi-brand network.
Trends are a part of every industry as change is a part of life. The trends in Automotive industry effects the decision-making process of the each one related to that industry, customers, dealers, manufacturers etc. It effects the consumer in a way as to buy an EV or ICE car, electric car has low emission. These decision-making effects the type of servicing done on the car. Automobile maintenance companies have no other option but to adapt to these trends.
Authorized service center provides repair and maintenance services for a single brand. The kind of expertise and using genuine spare parts make them an expensive option for the customers. On the other side there are local garages which provide services at a cheaper rate. They use traditional and local methods and tools for servicing and maintenance. Mostly the care owners who don’t want to spend more for maintenance of the vehicle go for garages.
New trend is multi-brand service center, they are placed in between the authorized and the local garages. These multi-brand service centers deal in the servicing of a huge range of car brands. These workshops provide quality of work and supply OEM, OES spare parts. They provide same standard of services but at a low cost. This is making them a first choice for the car owners. India Multi Brand Car Service Market is expected to reach about INR 73,162 Cr in Revenue by FY’2025.
Another trend is electric vehicles, due to the increasing pollution and low emission in EV, people are inclining towards EV. EV demands a different type of servicing and expertise. The manpower in the workshops need to be trained for the changing trends. As the time passes by, usage of EVs will increase and the share of ICE cars will decrease. Therefore, in the upcoming years both organized and unorganized vehicle maintenance companies need to retrain their manpower to work efficiently on electric vehicles. Also, the tools and technology need to be changed to new cutting-edge technology.
Lastly leasing of vehicles, this trend is increasing in auto sector. It came into picture because of the pandemic since it has caused a financial loss for many people. This method is cost efficient people are opting for leasing of vehicles. Moreover, the leasing companies takes care of repair and maintenance charges. This will reduce the burden on auto service center authorized as well as unauthorized and in future they must tie up with the leasing companies.
PPG F.I.E Association offers a varied range of automobile and vehicle companies. These
vehicle servicing companies are authorized as well as unauthorized dealers of vehicle spare parts, and many multi-brands service centers. Many authorized service centers such as Honda Motors, Maruti Udyog and Maruti Suzuki are providing best service as well as genuine spare parts and auto parts.