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.