1.Authorized Service Centres and Independent Garages forming the 2 major alternatives for car service in India
Nearly 80% of cars in pre-warranty go to authorized service centres for service. Only 1/3rd of post-warranty cars are serviced by authorized centres. Authorized/OEM Car Service Centers have high level of service quality due to mechanic expertise and experience of working with same brand of car.
Independent Garages have 40% lower labour cost as compared with that in authorized centres. Less proportion of Pre-warranty cars getting serviced by Independent garages. Buyers opting to utilize low price point of garages for post-warranty cars.
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2.Gaps left by Authorized Centers/Independent Garages- An opportunity for New Entrants
- Authorized Service Centres charge quite high for simple car services such as oil change.
- Car owner is responsible for procuring spare part in question when service done by independent garage.
- High variation in service quality & mechanic capabilities among independent garages.
- Authorized service centers often take as long as a full day for car service.
- Independent garages don’t offer the facility of cashless insurance, hence missing out on heavy amount service jobs and repairs.
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3.How Multi-Brand Car Service Centers will fill the Gap that is left unaddressed by independent garages
- After 3-4 years of the car purchase, majority of the owners prefer to get their cars serviced from multi-brand dealerships and independent garages.
- About 40% lower labour cost as compared with that in authorized centres.
- Multi-Brands have partnership with genuine & authorized parts suppliers to procure spare parts as & when required.
- Multi-Brands provide training to technicians in their franchise outlets to ensure standardized service quality.
- A general service at a multi-brand service center typically takes 75-100 minutes.
- A typical multi-brand service center has a partnership with ~10 insurance companies for facilitating insurance claims.