The significant area of revenue generation for automobile manufacturer and dealers is vehicle servicing as they try hard to retain car-owners after warranty expires by providing extended warranty at discounted rates and other promotional offers
The significant area of revenue generation for automobile manufacturer and dealers is vehicle servicing as they try hard to retain car-owners after warranty expires by providing extended warranty at discounted rates and other promotional offers. However, the majority of car-owners, prefer not to continue the extended warranty period, mainly because of two reasons, first, to have the multiple options for of their cars services and second reduce their service costs both from independent organized and unorganized service stations.
Figure 8-1: Proportion of Car-owners Quit from Extended Warranty
Most new cars come with a two year warranty. Car owners prefer to stay with, authorized service stations as they trust the service center because they are company managed plus use genuine parts and have trained technicians. This is more to do with the fact that they are aware that the aftermarket offers close to 30-40% of spurious parts. computerized work station and Car past record comes at least ranking, for car-owners, which accounts for 10% and 5%, respectively, as these factors are more significant from service stations' point of view instead of car-owners.
Figure 8-2: Reason for Staying with Authorized Repair Station after Warranty
Urban customers, with increasing regularity, are demanding an improvement in services along with its economic aspect, as after three or four years of purchase, car owners are shifting towards independent service station to save on hefty bills on spare parts and servicing. At present the independent service stations (organized and unorganized) accounts for 38% of total servicing in Delhi NCR. With the shift of car owners to other service stations, various authorized and independent players in this Industry are expanding their geographical reach to have the larger pie in the share.
Figure 8-3: Share of Car Owners’ Preferred Service Station by Type
Car-owners in DIY (Do-It-Yourself) category includes those customers, who can change some basic spare parts such as Air filter, External link, battery maintenance etc. of their own. This category of spare parts account for the least proportion in the market as car-owners are less mechanically inclined towards service parts and have less awareness of the same.
Figure 8-4: Proportion of Car-owners in Do-It-Yourself Category
In Delhi NCR, most of the car owners take the help of mechanic to identify the needed part for their vehicles as many local garages in this region are located in the roadside and the owners are not well informed about the required spare parts in their vehicles.
Figure 8-5: Influencers in Buying Spare Parts (%)
The OEM and Non-OE spare parts including Filter, Brake, External link and Shock absorber are also available in online shopping portals such as Snapdeal and Amazon. Besides this, some market place such as Motor part. in is also in existence, which connects buyers to different distributors of spare parts. However, the usage of online platform in this industry is in a nascent stage, which is expected to rise with the rising internet users in Delhi NCR.
Figure 8-6: Share of Car-owners Buying Spare Parts Online/Offline
As per our research, most of the car owners in Delhi NCR are aware of the spare parts used in regular services because these parts are replaced or repaired more frequently than the body parts.
Table 8-1: Delhi NCR - Brand Awareness among Car-owners