AutoServe 2014 addresses the Indian aftermarket: opportunities and challenges

The sixth edition of AutoServe 2014, a focus show on automotive car, maintenance, service, parts and garage equipment, which opened in Chennai yesterday aims to address the key issues facing the automotive aftermarket. Reports suggest that the Indian automotive aftermarket is worth Rs 38,000 crore including Rs 28,000 of spares and parts and Rs 10,000 crore of service and growing sizeably.

However, the sector has been facing some issues that needs industry and government collaboration. The issues arise mainly due to the disorganised nature of the industry where government needs to play a role while according industry status to the aftermarket; other issues are lack of which affects scale; need to adopt modern practices and technology and also unavailability of skilled manpower and safety practices. 

The three-day event organized by the Confederation of Indian Industry (CII) is focused on the theme of ‘Reinventing Aftermarket Service through Innovation’.

In his keynote address, R Dinesh, chairman of AutoServe 2014 and joint managing director, TVS & Sons, said, “This sector is most important as it has potential to generate enormous skills and semi-skills employment. In Tamil Nadu alone nearly 20-25 lakh people are employed in this sector and this covers a large and wide spectrum of the trade.”

Emphasising that the sector merits the support of the governments,both at the Centre and the state level, Dinesh drew attention to the funding crunch, because the aftermarket is not seen as attractive by banks. “Technology upgradation of the aftermarket trade suffers owing to the funding problem. It is necessary, therefore, thrust should also be given in the aftermarket sector, in view of its job creation potential,” he suggested.

The focus of the conference, explained Dinesh, is on stimulating the growth in aftermarket. “This will enable the sharing of best practices, the evolution of global models, and the creation of better value for constituents, because it is imperative to innovate to grow and be cost-effective,” he said.

The special address by Sumit Sawhney, country CEO and managing director, Renault Operations – India, drew attention to the fact that every job in auto companies creates 4-5 jobs in the ancillary industries. “Aftermarket is a profit-generator and a job creator. Therefore, working along with the government, the automotive industry should build the skills required,” he urged.

Speaking on customer service, Sudhir Rao, chairman and managing director, Skoda Auto India, called for a greater attention to the aftermarket, the unsung hero of the industry. “Automotive service is not perceived to be glamorous. Its working conditions are tough and it entails long hours. Let us think of ‘sales, service, marketing’ as the title for personnel in our companies and also rotate jobs. Let us get the quality guy meet the customer,” he recommended.

Meanwhile while delivering the inaugural address, P Thangamani, Minister for Industries, government of Tamil Nadu, said. “The state has been a favoured investment destination for manufacturing, more particularly, in the automotive sector. We encourage the vehicle manufacturers to purchase auto parts within the state,”

“The Vision 2023 document of Tamil Nadu aims at making Chennai the global leader in automotive sector.  Today, Chennai has become the home of seven auto majors with an installed capacity to produce 13,80,000 and about 361,000 commercial vehicles,” he said.

AutoServe 2014 witnessed the participation of over 80 exhibitors showcasing a wide range of products and services in the aftermarket segment. A Product Launch Zone has been created for exhibitors to launch their new products during the exhibition. The exhibition also saw live technology demos on vehicle testing, service and repairs by participating companies.