The car ownership experience may go through a paradigm shift once the businesses start again post the Coronavirus lockdown. A report release...
The car ownership experience may go through a paradigm shift once the businesses start again post the Coronavirus lockdown. A report released by Zekardo, a startup that helps car owners to reduce post-purchase vehicle ownership costs, reveals a drastic shift in mobility preferences post lockdown. Among other things, the report focuses on the fact that car owners will now prefer taking their vehicles to authorised service centres owing to hygiene issues. Industry estimates suggest that 60 per cent of car owners migrate to the unorganised segment once the cars go out of warranty. This happens on account of lower service and repair costs offered by local mechanics and garages.
Survey indicates that 53% of the respondents will now prefer going to an authorized service center.
A survey conducted by Zekardo indicates that 53 per cent of the respondents will prefer going to an authorised service centre in the short to medium term in case of a service requirement. This figure was 37 per cent in the pre-lockdown phase. In comparison only 10 per cent of car users would prefer to visit a nearby local independent garage. Some of the key reasons for this reduction post lockdown would include hygiene and health concerns of the garage staff, limited understanding of sanitisation practices and price transparency.
Also read: Coronavirus Impact: Increased Preference For Personal Vehicles Over Shared Cabs
Karunakar Dubey, Founder & CEO Zekardo Automotive Solutions said," Independent garages will find themselves amidst footfall drought, putting pressure on revenues and meeting rental and salary obligations for their migrant labor technicians". The majority of garages could also face labor shortages as most of the labor technicians have returned to their hometowns on account of closure of garages.
Over the last few days many OEM's like Toyota and Volkswagen have been coming out with safety guidelines to be followed at the service centers. Toyota has announced that company representatives will showcase a temperature certificate to customer during pick-up for service, and will also disinfect their hands before receiving the vehicle keys. The drop-off of the vehicle will only be allowed once the seats and steering is disinfected.
Many OEM's have been coming out with safety guidelines to be followed at the service centers.
Naveen Soni, Senior Vice President, Sales and Service, Toyota Kirloskar Motor said, "In uncertain times like these, it is paramount to lead the change and strive to thrive during this period of transformation, ensuring the safety and well being of our stakeholders and simultaneously safeguarding business continuity."
The unorganised sector accounts for 53 per cent of the $24 Billion Indian servicing and spares market. This segment consists of nearby local auto repair & service garages. But going forward even a 40-50 per cent lower service cost than authorised service centres may not be lucrative enough for consumers to head there.
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