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India Multi Brand Car Service Market Outlook to 2020- Used Car Sales and Expansion of Service Network to Drive Future- ken Research

Press release   •   Apr 25, 2016 17:20 IST

India Multi Brand Car Service Market Outlook to 2020- Used Car Sales and Expansion of Service Network to Drive Future” provides a comprehensive analysis of the Multi Brand Car Servicing Industry in India. The report covers various aspects such as market size of the multi brand car servicing market on the basis of revenues, segmentation on the basis of regions, warranty status, car type and service split. The report also entails detailed competitive landscape of major players in car servicing segment with failure case studies along with the Government regulations governing the market. An analysis of the future of the multi brand car servicing market in India along with the recommendations for the existing companies has been presented in the publication.

The car after-sales market has witnessed a significant growth during the FY’2010-FY’2015. The market has been growing majorly due to increase in passenger car sales, inclining numbers of service centers and intensifying awareness of customers towards their vehicle. The car after-sales market has been valued at INR ~ billion during FY’2015 and the market has grown remarkably from INR ~ billion in 2010 at a CAGR of ~% during the review period FY’2010-FY’2015.

Organized car service companies such as Carnation and MyTVS primarily have showcased failure in terms of their operations. These companies have altered their business model frequently to make their business profitable. For this, they integrated various services such as car insurance, car inspection, home assistance car services which are managed by their franchisees.

Till now, there has been no established business model for success. While some companies have suppressed their losses with the Franchisee-Owned Franchisee-Operated (FOFO) model such as Mahindra First Choice and MyTVS, others bear loss because of franchises pursuing their own business agendas while compromising on the component quality such as Carnation.

Procurement of spare parts has been regarded as the major challenge in this market. A majority of the original equipment manufacturers (OEMs) supply spare parts only to their authorized service network. Carmakers even control the supply of spare parts to constrain the unorganized or the multi-brand car service market. Although the garages are forced to transact in the grey market, the multi-brands have to operate in limited supply constraints. It is estimated that around 35% of spares in the after-sale service market are counterfeit products.

The market is further expected to reach INR ~ million in FY’2020 from INR~ million in FY’2015 in terms of revenues.

Key Topics Covered in the Report

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