Multi Brands have been able to Capture less than 2% of the total Organized Car after-sales market ken Research


Rapidly waning profit margins in the sales of new cars backed by the continuous addition in car life have made the after sales industry gradually more significant. At the same time, mounting competition in the car servicing market is putting the market shares of various players at risk. Multiple trends will influence the market structure along with the consumer behavior. This implies a need for innovative after sales business models to boost the revenue in presence of high competition.

India car after-sales market has contributed substantially to the growth of Indian automobile industry. The structural developments in the aftermarket have made more transparent. For each service or a component, the consumers now have plethora of options such as (OEMs, Multi Brand Stores and the unorganized mechanics) that they can choose from, so that it fits their individual criteria and personal requirements. This has increased the satisfaction of the customers for the services they receive.

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 attractiveness and huge potential of passenger car service market has led to the emergence of organized players in multi brand car service market. Car servicing market in India is dominated by OEMs own service centers, while at the other end, unorganized market in terms of local car service workshops have countered the demand. The post warranty vehicle (>4 years) service market was primarily acquired by these small independent local garages.

Although, the growth of multi brand car service has remained slow since inception, but this market has potential to grow in the coming years. By the time, companies such as carnation, MyTVS and others have entered into the phase of buying/selling of used cars, it has provided spurt to the market growth. It is because once a car is sold through these centers, the owner is most likely to bring his/ her car to these service centers for service and repair purpose. This provides an opportunity to the multi brand car service centers to get cross business.

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Ankur Gupta, Head Marketing



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