We are the world’s 6th largest car market, and soon to become 3rd largest in 3 years. Our ecosystem with millions of cars is yet to see a multi-brand service establishment. Why so?
Car Servicing in India is cheaper than in developed countries. Typically the split between the Labor Vs Spare-parts is 80:20 in developed countries. But in India, it’s still around 50:50, with the spare-parts contributing to almost half of the service bill. It is in direct proportion to the availability of cheaper manpower, though the customer satisfaction doesn’t resonate a similar story.
Every second car owner in urban India is disappointed with his dealership garage. The dealership garages are bound by the manufacturers to adopt to certain systems and processes, and to follow customer satisfaction just as a percentage. In the end, the manufacturers have created a very inefficient model for their dealerships, in which the dealer has to fleece the customer to make up for raising input costs.
The typical customer and has very limited options outside of his dealership. As we all would expect multi-brand setups to thrive in such kind of an environment, the answer is sadly no!
The fall of famed Jagadish Khattar’s Carnation chain of garages, is a grim reminder of the realities of the sector. The other contenders like MFC (Mahindra First Choice) and MyTvs are aggressively pursuing a franchise model, where again a similar relationship model like that of Manufacturer-Dealer is re-created.
MFC and MyTVS have closed many stand alone service garages in the recent past and looking for different revenue streams than just the servicing business. Infact, MFC pivoted towards certified used car business from the car servicing business.
On the other hand, the servicing requirement has been growing steadily. With every passing year, older cars contribute to 3.2 visits to workshops a year and newer cars a 2.5 visits a year. The servicing capacity that is available is bursting at it’s seams as “An empty car garage” is always rhetorical in today’s cities!
Carista is solving the problem by creating capacity for servicing cars, by adding mobile servicing bays. Our mobile car service vans are fitted with all the tools and equipments required for a complete service of your car, not requiring a visit to a garage at all! All you need at a click of a button, or tap on your phone, Carista’s car service team and mobile workshop would be at your driveway, saving you time and money than taking to a garage.
The next time a customer is dis-satisfied with a dealership experience, we can confidently say that was absolutely un-neccessary. By lean and efficient service bays creating the servicing capacity, we are solving the multi-brand service puzzle with a model appropriate to a developing country like India!
(Posted on IndianCEO.in originally)