Bottleneck in the Indian automotive aftermarket growth
The Indian automotive aftermarket is expected to grow to around $9.4 billion by 2015 from its present estimated size of $3.7 billion.
Car technology is changing rapidly and to keep pace with latest systems, there is a need for a specialist service provider. Large groups are investing into machinery and equipment along with training manpower. Building own workshops to cater demands is not feasible even large group invested heavily building infrastructure. Majority of people are still visit to road side workshops for car servicing.
Bottleneck in the Indian automotive aftermarket
– Untrained Manpower
The automotive aftermarket industry is one of the largest employers of skilled, semi-skilled and unskilled workforce in the country, and there is a shortage of skilled workforce. Survival of small workshop is difficult when they do not have trained mechanics. There are groups like Bosch Car Service, are building network of car workshops and helping small workshops by standardizing and providing training.
– Scarcity of Spare Parts
Car manufacturer supplies spare parts to OEM dealers only. Car owners look for spare parts from small garages with same quality. Alternates and unbranded spare parts are available in the market. Car owners are happy getting cheapest spares from the outside market. Few garages claims they source from OEM dealers or same companies suuplies to OEM. Audit spare parts companies to stop supplies in the open market is not easy for OEM when they supplies same parts with different local brands. There is a need to increase supplies of spare parts.
Indian auto industry is investing heavily in developing facilities for design and manufacturing of auto spares parts. This investment will attract global auto giants to start outsourcing quality spares at competitive price from India. It is estimated that in next 5/6 years the spares parts industry for automobile will be a $14 billion investment.
– Monopoly of OEM dealers for warranty car service
Globally all OEM dealers are allowed to provide car servicing during warranty period. No other car workshop and service centre can provide that service. It has stopped car manufacturer sharing technical information about car technologies to others. In USA and European countries, garages and small car workshops has filed petition for “The Right to Repair”. Some of the states has approved it and community is still working on this to get it approved globally.
The need for Right to Repair legislation has become a necessity in order to protect the rights of car owners to decide where and how they have their vehicles serviced, whether at a new car dealer or an independent service facility. Right to Repair ensures that the person who bought the car and not the car company, can decide where that vehicle is repaired and maintained.
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Source:
http://www.thehindu.com
http://www.getmoneyrich.com/
http://www.righttorepair.org
http://www.thehindubusinessline.com
http://ciiautoserve.in
http://automotivehorizon.sulekha.com/