Govt Approved Multi brand workshop(Cars)
Several initiatives by the Govt of India and increasing presence of major automobile players in the Indian market, are expected to make Indian car market a world leader. Resultantly, the car servicing business is growing faster to meet the increasing demand from this large car population in the country. The market research data states that only one third of the cars go back to dealer workshops post warranty and rest opt for local multi brand garages, which can provide reliable and cost effective service with closer home advantage. To cater to this ever increasing demand, the Multi Brand car servicing stations, providing cost effective yet high quality repairs, is the future of car servicing industry in India.
The car servicing market can be classified into 3 categories - organized single brand segment-run by authorised car dealership network catering to a particular brand of cars, organized multi-brand workshops that deal with multiple brands and a vast network of unorganized multi brand (local garages). In terms of revenue, the larger chunk goes to the unorganized multi brand workshops, a whopping 53% while a lump sum of 46% is taken in by the organized single-brand segment. Although the organized-multi brand service providers hold much promise, they rake in the remaining 1% of the revenue, owing to their infancy of inception. Before these multi brand organized car service providers came into conception, the market was originated of organised authorised workshops and independent small garages. The post warranty vehicle (>4 years) service market was mainly captured by small independent garages and this was the sweet spot that organised multi brand car service providers targeted.