Maruti Suzuki to Focus more on After Sale Service

Indian auto industry is going through a very bad phase, even the country's largest carmaker Maruti is facing the slowdown in its sales. In order to fight with slowdown, Maruti Suzuki India has been advising its dealers to focus on 'service'. It is expected that the service business will grow at 20 per cent over the next three years as against the new car sales industry, which is receiving a negative growth, the company is aiming to invest more on service rather than sales to keep its channel partners profitable through the rough-time.

Last fiscal 2012-13, Maruti's service network rectified over 17 million cars, including accidental vehicles, which is almost 5 per cent growth over the previous fiscal. It is also expected that service business in India will increase by 8 per cent this fiscal and almost 20 per cent by the next three years. Maruti Suzuki India is expected to provide services for 20 million vehicles by 2015-16.

"It would not be an exaggeration to say that car service in a way is recession proof and for car manufacturers , with robust after sales service network, it is the biggest weaponry to combat slowdown conditions," said a senior analyst with a Delhi-based MNC consultancy .

In the present scenario, the company's network is trying hard for every new car sale, it is the service network that makes the channel profitable despite the slowdown. Recently Mayank Pareek (marketing and sales) Maruti Suzuki says that the new car sales is an "income from the stock market" while the service income is like "fixed deposit in a bank". The new car sales might go up or down, but the income from car service is fixed.

Maruti has 3,000 workshops in more than 14,000 cities, making it as the largest sales service network in the Indian car industry. The company's dealerships and workshops provide services to 50,000 cars everyday and around 17 million vehicles a year. The company service provides employment to around 90,000 people.

Source: ET

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