Multi Brand Outlets - the Next Megatrend for Car Aficionados in India: Mahindra First Choice Services

/ -- The automobile industry has witnessed a massive slowdown over the past couple of quarters. The reason behind the slowdown can be attributed to weak consumer sentiments in both urban and rural areas. As per one of the recent reports the industry has witnessed downward trend in car sales due to low demand, increased insurance cost by 2-5% and revised higher pricing of vehicles. In such a scenario the demand is gradually shifting towards pre-owned cars or maintaining of existing vehicles. Most people prefer to invest in their existing vehicles and maintain it instead of buying a new car. In current scenario, one can foresee more demand for car servicing workshops that offer service support to multiple brands, the Multi-Brand Outlets (MBO). Is the MBO, then, the next multi-million-dollar opportunity for the auto industry and auto entrepreneurs.

This is the sweet spot where Multi Brand Outlets (MBO's) or specialised workshops for all brands under one roof come into the picture. For those who own cars of different brands and have to scramble around to various service stations to have their vehicles serviced, MBOs are the answers to their one-stop requirement, offering quality service, on time delivery, quality spares and skilled and trained technicians.

As a car owner, one of the biggest worry would be service and maintenance at the right price, quality spare parts, as well as a service station not far from the place of work or residence. If the car owner gets their car serviced from an MBO, they would pay 20% lesser than what they pay for their OEM. The MBO uses spares from both, OEMs as well as quality substitutes sourced from reputed suppliers.

At present, the car maintenance needs of customers in the country are taken care of by dealer workshops of Original Equipment Manufacturers (OEMs) which constitute approximately 32% of the market and Independent Garages (IGs) that have a majority 64% market share. (Data Source- ACMA report on India Automotive Aftermarket study 2016).

To put the numbers in perspective, the car servicing industry in India is growing rapidly with the overall car service market currently valued at Rs. 30,500 crores annually. The total estimated car parc in India is at 31.3 million cars and expected to grow to 44.7 million cars by 2020, with 36% of these vehicles being between 4-8 years old. (Data Source- ACMA report on India Automotive Aftermarket study 2016). These figures itself shows that there is a great potential for entrepreneurs to take up a franchise of multi-brand servicing business.

MBOs currently occupy a minuscule 4% market share a small, insignificant number one is likely to think. (Data Source- ACMA report on India Automotive Aftermarket study 2016). However, one would be surprised at how fast this trend of MBOs is picking up among top brands such as Mahindra First Choice Services and a few others.

MBOs are now being looked at as the next emerging mega trend of the Indian auto aftermarket because they are perfectly positioned between OEMs who offer quality service albeit at a high cost and IGs who might offer a cheaper service but have unskilled technicians who are not up to date with the latest technology.

Factors pushing customers towards MBOs
Servicing of any brand of car
Quality service through skilled and trained technicians
Availability of quality spares from reputed suppliers
On time delivery of the car post repairs
Repair over replacement
The Edge over OEMs and IGs
MBO pioneers in India
About Mahindra First Choice Services
Each four-wheeler service workshop is spread over an area of 7000 sq. ft- 15000 sq. ft and two-wheeler workshop area ranges from 600 sq. ft- 1200 sqft. MFC Services poised to deliver world-class automobile maintenance and service solutions
Visit us at www.mahindrafirstchoiceservices.com Twitter: @MFCServices Facebook and Instagram:@MahindraFirstChoiceServices
About Mahindra