Multi brand car servicing business in India : Corporate with franchisee model

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India is poised to overtake Japan as Asia’s No. 2 vehicle market by 2016 according to new estimates (by WSJ). Car sales in India are projected to rise to 4.88 million vehicles by 2016. Car servicing business is growing faster to meet increasing demands from large car population.

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Serving to car owners with all makes would definitely bring more business to car service center than serving to one. According to reports, only one-third of the cars go back to the dealerships post warranty and rest search for other good workshop. There is huge potential in after-market for multi-brand workshops.

Small car workshops serve multi brands. Normal servicing and running repair is possible at any service station but arrangement of genuine parts is not easy for everybody. Car manufacturer recommends genuine spares. Availability of genuine spare parts difficult for multi brand workshops and customers prefer dealer workshop.

Over the years, Indian Auto Spare Parts sector has witnessed a slow yet steady growth. Spares parts of different brands are available in the market. Small workshops use non-branded cheapest parts, some believes they are same genuine parts without labels.

Corporate like Bosch, Mobil1, Castrol, Carnation, Carz are running multi brand authorized workshops. Some are building own multi brand workshops and others are making franchisee all across India. There business model varies, some are supplying tools and other lubricants to these franchisee workshops.

There is estimated over 19000 multi brand workshops in India, and estimated 5000 are worth. All corporate search for these 5000 worth workshops to make them franchisee or try to acquire them.

Maruti has 2992 authorized workshops all across India. Currently Maruti vehicles are more than others, but workshops which are not doing good in business starting servicing to multi brand customers.

More Reading and Source:
India to Overtake Japan in Car Sales

http://www.business-standard.com

http://automobiles.mapsofindia.com

Picture Source: http://si.wsj.net