How Maruti stayed close with its customers even in dull market scenario? - Vehicle Service Strategy

– Now wait only 90 mins to get your Maruti car serviced

Indian automobile industry didn’t perform well in 2012-13 due to fuel price increase, high inflation and decrease in supply due to strikes in Maruti Gurgaon and Hyundai Chennai plants. Except fuel price increase, other factors are not common and hence the industry entered into a dark phase where it sales was low for five continuously quarters till Jun-Sep 2013. However, even in the difficult situation, India’s largest car manufacturer Maruti stay connected with its customers by implementing Vehicle Service Strategy.

Maruti has started to forecast a revenue opportunity in automotive serving and immediately strengthen its service quality and expanded the network. Currently, it has 2,971 service centers which include 1,460 dealer workshops and 1,511 Maruti authorized service stations. In India, automotive serving is largely unorganized and authorized service centers are preferred only up to second or third year after the purchase. In 2012 only 69% of owners have taken 3-4 times AS services from authorized dealer, which decreased from 91% in 2011. Besides, there was decline in number of customers opting for extended warranty.

Maruti has understood the needs of customers after optimal period and executed the vehicle service strategy in two pillars:

Expanding the coverage of service network

1. Maruti divided its current servicing network into five zones to maintain the standards. For instance, Bangalore and Chennai will come under south zone.
2. Further these zones are divided into areas to enable easy communication between service centers and avoid out-of-stock situation in spare parts.
3. It also explored new locations in the various areas for expanding its network.

Technology enhancement in service centers  to cut down the servicing time

1. Maruti has introduced series of steps in the last 3 years to reinforce the technology based in service centers. Most of the innovative ideas are tested in four operational Maruti Service Master Outfits in Delhi, before implementing.
2. Tablet for advisors: The executives in service centers, who interactive with custome and understand the problem in the vehicle, were provided with tablets to assist the customers quickly. Using the tablets, the executives can retrieve the service history of the car by searching with the car registration number. So the enrolling procedure will take only 3 minutes, compare to 15 minutes in earlier procedure. 
3. Express service bay: Maruti has advised the dealers to setup the advance bay in service centers to reduce the serving time per car. (Its investment is Rs. 2.5 lakh). The express service bay will have separate tool trolley and new oil management system which allows the technician to complete the overhauling and repairing in lesser time. Also the technicians are selected for this job, through a tie-up from Industrial Training Institute (ITI), with higher skills to service the car.
4. Investment in Car washers: They encourage the dealers to go for automatic car washers (investment need: Rs. 7 lakh) which further reduces the time from 10-12 minutes under manual wash. Maruti also pushing its dealers to go for dry wash system in water scarce regions.

Results

1. With the help of 1,318 express bays in 877 workshops, Maruti is handling 11,862 vehicles per day. 
2. It has reduced the labor time by 15% with new infrastructures and also controlled the labor attrition ate, which normally will be 10-15%. 
3. The service network of Maruti Suzuki has grown 5% in 2012-13 and it serviced over 17 million cars including the accident cars in the same year. 
4. The service volume is expected to increase 8% and 20% in 2013 and 2014 respectively which implies the starting of investment pay back.

Hence, now Maruti can not only supply price competitive vehicle but can also provide time competitive after sales service.