The Indonesian market is anticipated to witness the expansion of multi brand car service centers in Tier I cities to give a tough competition to the authorized workshops in 2020, as per a report by Ken Research
1. Companies expanding presence in digital to cope up with covid losses- Trends in Indonesia automotive aftermarket Industry
Car Servicing Alternatives in Indonesia
E-Commerce has become the new normal in Indonesia due to COVID-19. The automotive aftermarket service and spare parts companies are expanding their presence in the digital retail as the market looks far from recovery with the current rate of rising cases in the country. The companies are taking online booking so as to reduce avoid rush at the workshops. Few companies has started sending mechanics for home service for the customers.
Indonesia’s developing used car market is gradually becoming more structured due to the greater availability of flexible financing terms, standardized and authorized dealership channels and better transparency of information.
2. Multi Brand workshops dominated the Aftermarket Service Industry in Indonesia.
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- 10-20% lower service cost as compared with that in authorized centres.
- Advantage of bundling small services together without charging extra for the same.
- High level of customization and personal service. Owners can request a particular mechanic to work on car and supervise the operation.
- Buyers opting to utilize low price point of garages for post-warranty cars.
3. There is high competitive rivalry in indonesia’s aftermarket service industry according to porters 5 force analysis
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Players have wide presence across the country. Competitive pricing is present in market. The demand for high expertise mechanics is growing. Authorized service centers face high competition from multi-brand centers owing to shorter warranty period of cars. Authorized service centers pose stiff competition to multi-brands in terms of service quality, OEM-quality spares and expertise over vehicle brand.
