Endorsing itself as one of the most
prominent vertical of the global automotive & transportation
industry, authorized car service center market has been, of late,
traversing along a lucrative growth graph. The perpetually increasing
rate of passenger vehicles on road across the globe is one of the most
pivotal factors that has surged the sales of vehicles, which in
extension has also favored the remuneration landscape of the global
authorized car service center industry.
According to a reliable report shedding light on the growth prospects of this business sphere, it was estimated that the global authorized car service center market
will accumulate a valuation of a whooping USD 247 billion by 2024,
chiefly thriving on the cusp of the growing focus of automakers on
providing valuable customer service for their vehicles.
In line with the growing rate of passenger
vehicles, several auto manufactures are offering attractive aftermarket
and auto after-sales services along with extended warranties and
affordable annual maintenance schemes. As a result of this, prominent
automotive brands are establishing multi-brand car service showrooms in
tier 2 & 3 cities thereby positively influencing authorized car
service center industry share. Estimates claim that the organized
multi-brand car service center segment will register a CAGR of 2.5% over
2018-2024, owing to the affordable and comparatively low service costs
as compared to that of OEMs coupled with authentic warranties and
discounts from the companies.
Asia Pacific authorized car
service center market to exhibit 3.8% CAGR over 2018-2024, India to
emerge as a lucrative investment hotspot
In terms of the geographical landscape, it
is prudent to mention that the entire Asia Pacific region is showing
some lucrative investment prospects for the potential stakeholders.
Owing to the rapid proliferation of the urbanization trends and low
labor costs in several developing economies of APAC, global automotive
industry players are seen actively tapping these markets. If reports are
to be believed, the growth of the authorized car service center market
seems to be rather pronounced in India in the last couple of years. The
investment trends can be aptly credited to the growing demand for cars
and transportation vehicles in the country. Several industry players are
taking advantage of this scenario and are striving to bring innovative
services & products to the masses with competitive rates.
For instance, in January 2017, Bosch, the
renowned automotive industry player announced that it will be opening
new Car Service Centre in Bangalore, India, with an aim to provide high
quality services for multi-brand cars. According to the reports, the
move comes in the wake of increasing customer demand for technologically
advanced products and systems in the region. The company adds that the
increasing pre-owned car sales in line with a huge car parc coming out
of the warranty period have been attributable to its decision of opening
its first Company Owned Company Operated Bosch Car Service Centre. It
has been further reported that Bosch is planning to include 700 more car
service centers under its franchisee model over the period of next five
years.
Maruti Suzuki’s rising prominence in India authorized car service center market
According to recent news reports, Maruti
Suzuki India, forming one of the largest car manufactures in the region,
is aggressively planning to expand it service network by a significant
56%, while taking it up to 5000 centers by 2020. In its growing quest to
improve its profitability through dealership, Maruti Suzuki India, has
developed a royalty vertical, wherein the company is offering its
vendors including engine oil suppliers, tyre makers, and battery
manufacturers to sell the products directly via company’s authorized
service centers and dealers. The report stated that out of the 5000,
3000 service workshops will be operating under dealership programs.
For the record, the company’s premium
range of Nexa service centers have gained immense traction in the recent
years and is no longer an unfamiliar name to the Indian car buyers.
According to industry experts, such strong growth of service and
dealership networks across the country will be majorly favoring the
growth of authorized car service center market in the ensuing years.
Analyzing these trends, it comes as no
surprise that the global authorized car service center market is certain
to progress at a prodigious pace in the ensuing years. Driven by the
global automotive companies further willing to expand its valuable
services to the customers, the commercialization matrix of this business
sphere has been forecast to hit a commendable valuation by 2024. Other
prominent global contenders holding major chunk of the global authorized
car service center industry include 3M, Mahindra First Choice Services,
Carnation Auto, MyTVS, Datsun and Nissan.
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