What does the future hold for Automobile Servicing in India?

The automobile servicing industry in India is on the brink of a transformative era. According to the Society of Indian Automobile Manufacturers (SIAM), 4.2 million passenger vehicles were sold in India for FY 23-24, indicating a strong upward trend with a fivefold growth forecast by 2047. The sale of EVs is also projected to increase over the coming years.

Propelled by these factors, the automobile servicing and repair market is expected to reach $25 billion by 2030. With the rapid growth of the automotive market and increasing consumer expectations, the future of automobile servicing promises to be dynamic and innovative. As technology continues to evolve, the industry is poised to adopt new practices that will enhance efficiency, customer satisfaction, and overall service quality.

The Indian automobile service industry is characterized by three main types of service centres: authorized service centres, unorganized local garages, and multi-brand service centres.

Authorized Service Centers

Authorized service centres are affiliated with specific automobile manufacturers. These centres are known for their adherence to manufacturer guidelines, use of genuine spare parts, and trained technicians. They offer a sense of reliability and trust to customers, ensuring that their vehicles are serviced according to the highest standards.

While authorized service centres have always been the first preference for car owners, the huge demand may result in higher turnaround times, leading to poor customer satisfaction.  Given the high level of trust placed in authorized centres, customers often move between dealerships for their service needs. Rather than offering repairs, these dealerships typically opt for full replacements of any malfunctioning or damaged parts, which can lead to significant costs.

Unorganized Local Garages

Unorganized local garages are widespread across India and cater to a large segment of the population. These garages are often run by skilled mechanics who offer affordable services. While they provide a cost-effective alternative, the quality of service can vary significantly. The lack of standardization and use of non-genuine parts can sometimes compromise the longevity and performance of vehicles. Trust is a fundamental issue when dealing with these garages.

Multi-Brand Service Centers

Multi-brand service centres, such as Go Mechanic and Vehicle Care, have emerged as a middle ground between authorized service centres and local garages. These centres offer services for multiple car brands under one roof, combining the reliability of authorized centres with the affordability of local garages.

They leverage technology to provide transparent pricing, service tracking, and customer convenience, making them an attractive option for many car owners. The challenge of balancing customer expectations while minimizing costs has resulted in the closure of many service centres.

Nevertheless, the automobile servicing industry in India also struggles to keep up with the technological adoption of its manufacturing counterpart, and the knowledge gap becomes more evident when opting for options other than the authorized service centres.

Technological Advancements in the Automobile Service Industry

The global automobile service industry has seen significant technological advancements that have revolutionized customer experience in car dealerships’ service departments. These innovations set a benchmark for the automobile repair industry.

· Appointment Scheduling: Modern service departments offer seamless appointment scheduling through online platforms and mobile apps. Customers can book service appointments at their convenience, reducing wait times and enhancing overall satisfaction.

· Real-Time Service Updates: Real-time service updates keep customers informed about the status of their vehicle’s service. Through text messages or app notifications, customers receive timely updates, ensuring transparency and reducing anxiety about service progress.

· Diagnostic Services: Advanced diagnostic tools have improved the accuracy and efficiency of vehicle inspections. These tools can quickly identify issues, allowing technicians to address problems promptly and accurately, thereby reducing service time and costs.

· Automated Spare Parts Inventory: Automated spare parts inventory systems ensure that service centres have the necessary parts in stock. This reduces delays caused by waiting for parts to arrive and enhances the efficiency of the service process.

· Video Walkthroughs: Video walkthroughs provide customers with a visual explanation of the service process and any issues identified in their vehicles. This fosters trust and transparency, as customers can see firsthand what needs to be repaired or replaced. Moreover, video walkthroughs are a great resource for customers who find themselves needing on-road assistance while traveling out of the city.

In addition, service providers can also improve customer satisfaction through an integrated platform backed by information technologies such as AI, machine learning, data intelligence, and CRM. Employing such digital infrastructure helps service centres streamline their workflow, elevate the end-to-end customer experience, and offer omnichannel support. By archiving customers’ previous service history and data, service providers can ensure it is accessible across their network of centres.

Potential Impact on the Indian Market

The technological advancements seen in the automobile service industry have the potential to significantly impact the Indian market. Implementing these innovations could bring numerous benefits and challenges.

Adopting advanced technologies in India could lead to improved customer satisfaction through enhanced transparency, efficiency, and convenience. Real-time updates and video walkthroughs can build trust and ensure customers are well-informed. Automated systems can streamline operations, reducing service times and costs, ultimately benefiting both service providers and customers.

However, implementing these technologies in India comes with challenges. The diverse and fragmented nature of the Indian market, coupled with varying levels of technological adoption, can pose hurdles. Although the cost of implementing advanced systems may be a barrier for smaller service centres, ensuring consistent quality and standardization across different types of service centres will soon become a requisite.

Conclusion

The future of automobile servicing in India is set to be shaped by technological advancements and evolving customer expectations. As the industry embraces innovation, it will need to balance affordability, quality, and convenience. The integration of advanced technologies promises to enhance the overall service experience, paving the way for a more efficient and customer-centric automobile service industry in India. With the right strategies and investments, the industry can look forward to a future where servicing a vehicle is as seamless and satisfying as driving one.

By Sandeep Kumar Jain, Managing Director, CDK Global India