1. South East Asia Automotive Summit, 2012
Aftersales Market: Strengthening the role
of Automotive Independent Workshop
(Work in Progress)
Joko Wiyono
Managing Director
Qasa Strategic Consulting
2. SE Asia is a growing market for automotive
industry with Indonesia and Thailand as key
market drivers
Brunai and Singapore: Mature
Malaysia: Almost Mature
Vietnam and the Philippines: Future
Potential
Indonesia and Thailand: Growing Market Market Maturity, 2011
390
340 Brunai
Vehicles Penetration
290
240 Malaysia
190
Thailand
140
Singapore
90
Indonesia
40 Philippines
GDP Per Capita (000 USD)
‐10 Vietnam
‐20 ‐10 ‐ 10 20 30 40 50 60 70
3. Automotive sales in SE has increased
significantly
• In the last 4 years, as many as 10,3 million cars are added to
the parc in 6 SE Countries.
• About 33% additional cars are in Thailand and 31% in
Indonesia.
• In the case of Indonesia, about 56% of additional cars are in
MPV <1.5L category
2009 2010 2011 2012
1400
1200
1000
Vehicles
800
600
400
200
0
Brunai Indonesia Malaysia Philippines Singapore Thailand Vietnam
4. Future Economic of the region is
promising, expect higher sales in near future
Population GDP/cap GR (2009-11) 2012-16
Brunai 0.425 38.534 1,9% n/a In Indonesia
alone there’ll
Indonesia 241.030 3.512 6,1% 7%
be an
Malaysia 28.553 10.085 5,1% 5%
additional of
Philippine 1,6 million
s 95.856 2.345 3,7% 5% cars in 2015
Singapore 4.740 60.500 4,9% 5%
The industry expects at least
Thailand 64.076 5.395 >3 0,9%
million units new
5% vehicles
Vietnam
added to the market in 1.374
89.316 2015. 5,9% 6%
The industry should keep up with aftersales
service facilities (quan and qual) to ensure
customer has good access to the service
5. Aftersales service is one of key drivers for
customer in selecting car brand they
purchase...
Aftersales service is:
• an area that a car brand connects with its customer
• an area that the brand communicates “trust” to
customer
• an area to maintain “reason to buy” for the brand
• big business that often being “neglected” by auto
maker
So, the aftersales service is NOT
cost center!!
6. Currently, capacity of authorized
aftersales service is still limited.... 85% of
post-warranty repair are performed by Independent Workshop
# Authorized Workshop
Things often complained by
2012*) customer:
235
227
“High bill charges (components
197 and labour costs are equall
181
expenssive) and long
queu, especially during weekend”
100
79 83
45 40
30 32 29
TOYOTA DAIHATSU MITSUBISHI SUZUKI NISSAN HINO HONDA MAZDA ISUZU KIA HYUNDAI FORD
*) some figures still need validation
Major challange is network coverage!!
7. Independent workshop as alternative
extension of car manufacturer for improving
Aftersales service to customer
Characteristics: Est. Independent Workshop
Population
Ownership is highly fragmented
Family owned and managed 1% 5% 1%
No applicable standard service Franchised
13% Workshop
Multi sources parts -- ready
stock only for high moving parts Quick Fit
High degree variation in terms
of Independent
• #mechanics and skills Workshop
• Equipments and facilities 80% Spare‐part Shop
• Service level
Source: Estiated form Qasa Consulting outlets census
Major customers: ageing
cars, low cost cars after
An estimate
warranty period is off of 30-35,000 workshops national wide
8. Sthrengthening Role of Independent
Workshop
Building new authorized workshop requires extensive investment
Standard Periodical
Car Maker of service Service
An innovative mutual Audit
cooperation workshop
concept should be developed
Authorized
Workshop
(current
format)
• Mechanic skills
• Genuine
Empowering Independent (recommended)
Workshop to keep up with Tier 1: Fully
Certified
parts supply system
growth of new cars on the Workshop • Minimum standard
service
road requirements
• Pricing
Tier 2:
Certified
Workshop for
Quick Service
10. Vehicles Parc has been double in .. years
Vehicle Parc, 2011
17,591
9,605 10,101
2,996
1,754
‐ ‐
Brunai Indonesia Malaysia Philippines Singapore Thailand Vietnam
And there’ll be an additional of 3 million units
every year...
