We aspire to conquer the aftermarket
Around 40 million Employees, 10% Growth Rate, 3.5 Lakh Crore Exports and Approx. 7.8 Lakh Crore Indian Automobile Industry We aspire to conquer the aftermarket. If we talk about two-wheeler in this sector, then India is the largest producer of two-wheeler and three-wheeler in the world. Under this production capacity, India exports over 50% of two wheelers with Hero, Bajaj and TVS being the major manufacturers.
We can say that this is the golden age of services in India. To prosper, every company must transform itself into a service business. We all swear by the service-cantered approach of the working world, but personally, they acknowledge a small concern. Most of the companies either do not know how to provide after sales services effectively or not. Top management worldwide considers aftermarket services only as a consideration.
But we can say here that at least it is unwise to ignore the promise of after-sales services. Since the early 1990s, companies in North America, Western Europe, and Japan have stopped moving products and began to value customers from using those products. If we talk about the growth in the EV sector, with a growth of 335%, the current EV market in India has registered a growth of 660% in two wheelers, 150% in three wheelers, 300% in four wheelers and 160% in registered growth. Buses. , So what we are trying to say here is that we have to promise those things in our workspace which we are ignoring.
We aspire to conquer the aftermarket How ?
American, Japanese and European companies changed their behaviour as demand declined, competition intensified and profit margins plummeted. As their businesses began to offer solutions rather than products, it became clear that after-sales repair and after-sales services of spare parts would set up upgrades. They understood that repairing equipment, carrying out inspection and daily maintenance, providing technical support, consulting and training and arranging finances could also be a great source of revenue and profit.
In industries such as automobiles, white goods, industrial machinery and information technology, companies have sold so many units over the years that the aftermarket original equipment business has grown four to five times larger. Sales of spare parts and after-sales services account for 8% of annual GDP in the United States.
This means that American businesses and consumers spend about $1 trillion on their assets each year. This also means that the US has the largest aftermarket, excluding the world’s eight largest economies. This was no surprise at the Wharton-Stanford Service Supply Chain Thought Leaders Forum in October 2004. Executives there said they generate between 29% and 50% of their revenue from their firm servicing products.
We will know more about this in the next special post
- How American businesses and consumers spend nearly $1 trillion each year on the assets they already own.
- Ruining its potential, despite the apparent attractiveness of the aftermarket.
- How to deal with the challenges of the aftermarket
- Production of services before business demand.
- How to identify products.
- How to design a portfolio of service products.
- How to use the many different business models.
- How to determine the organizational structure after sales
- After Sales Service How to Optimize Supply Chain.
- Resources are to be deployed and their parts and locations are hierarchical.
- A high level of service for one customer may require a low level of service for another.
- How to monitor supply chain and performance.
How did you like this topic, do write to us and join us and complete this topic. And yes, Sevens Automotives manufactures control cables for two wheeler vehicles, you must use a Sevens product.