Future for the Aftersales Services Market
Barath Ashokkumar, Anand Sethuraman, and Karthicknathan Shanmuganathan, predict a bright future for the aftersales services market. They believe that data can act as a new gold and offer varied advantages to vehicle owners.
As pointed out by Charles Fine in Clockspeed, “The supply chain of the companies can draw an analogy to the evolutionary process in the ‘fruit fly’ study.” The automotive industry is no exception, with the evolution being witnessed in the form of electronic transformation of vehicles. A modern car today has up to 100 ECUs (electronic control units) and the evolution has only just begun. The percentage share of electronic components in a car, which was less than 20 percent a decade ago, has increased up to 40 percent today.
This transformation brings with it, gigabytes of data, and an increase in complexity of the automotive components. This could potentially alter the entire landscape of aftersales service industry, which is forecasted to cross US$276 billion in revenue by the beginning of 2017. Original equipment manufacturers (OEMs), by the virtue of command over complex parts and control over the gold mine of data, are at the brink of seizing control over the aftersales market pie. This announces an impending paradigm shift in the business.
Published with permission from ET Auto and The Times of India.
About the authors
Barath Ashokkumar is a consultant with a rich experience in the automotive and life science sectors, covering areas such as sales and marketing, supply chain management, and knowledge management. He is an engineering graduate from College of Engineering, Guindy, Chennai, and holds a master’s degree in business administration from BIM, Trichy.
Anand Sethuraman is a senior consultant, having rich experience in the aerospace and automobile sectors, particularly in aftersales services and traceability. He has graduated in aerospace engineering from Madras Institute of Technology, Chennai, and has over nine years of experience working with Infosys. He holds supply chain management certification from American Production and Inventory Control Society (APICS), USA.
Karthicknathan Shanmuganathan is a senior associate consultant in Infosys, with over four years of industry and consulting experience in the logistics and automotive sectors. His areas of expertise include telematics, auto finance, supply chain, auto sales, and knowledge management. He holds a Scrum Master certification from Scrum Alliance, USA.