Você está na página 1de 3

Mahindra War Room 2016

MFCS Business Caselet

MAHINDRA AFTERMARKET SECTOR


DIGITIZING MAHINDRAS CAR SERVICING FUTURE
Mahindra After Market Sector comprises 2 companies - Mahindra First Choice
Wheels, a click & mortar car mart for buying and selling pre-owned cars of all
brands, and Mahindra First Choice Services (MFCS), which offers a wide range of
Automotive repair and service solutions under one roof. This caselet pertains to the
MFCS business of After-Market sector, and is one of the 2 optional caselets for
students interested in the After Market Sector, the other being the MFCW caselet.
BUSINESS BACKGROUND:
Established in 2008, Mahindra First Choice Services (MFCS), is designed as a onestop solution, offering customers a range of car service, repair and insurance
solutions. MFCS has carved a strong niche for itself, by offering value-added
services such as pickup facilities and towing in case of a breakdown, with convenient
online appointment bookings to boot. The company also operates a unique, industryfirst online spare parts inventory exchange to harness the potential in spares trading,
that is today spread across a lengthy value-chain. With over 150 service centres
across India with 250 more in setup phase, MFCS expects to have over 400 car
servicing outlets by the end of fiscal 2017, with a likely tripling of the same by 2020
through the Franchise route.
LIVE CHALLENGE: DIGITIZING MAHINDRAS CAR SERVICING FUTURE
Indias car servicing industry is slated to be an INR. 33,000-crore business by 2020,
up from INR. 20,000 crore now, and multi-brand servicing networks expect to grab at
least eight per cent of the business by then. The Indian Automobile Services Market
has been gradually organising itself better, with 46% of service centres considered
Organized now. Only 1% of these players are multi-brand as against a metric of
33% in advanced Automotive markets such as the European Union and United
States. With India becoming the 4th largest automotive market in the world by
volume, exceeding all European markets in sales, there are more than 30 million
cars plying on the Indian roads. Estimates show that the market is likely to grow to
over 6 million units per annum by 2020, moving up to become the third largest
producer of Automobiles by this year end. Since the growth of the Aftermarket
Industry is directly proportional to the growth of the sales of Automobiles, the
Aftermarket business in India is set for a major breakthrough. Mahindra sees both
the need as well as opportunity for service providers to enter into the multi brand
car servicing network. With car production increasing at a break neck pace, the need
for servicing them is likely to grow manifold, causing an impending boom.

Broadvision Perspectives Client Confidential

1 of 3

Mahindra War Room 2016

MFCS Business Caselet

Riding on this offline growth, Mahindra First Choice Services has decided to take its
digital presence to a completely new level with Carworkz- an intelligent mobile and
web application that aggregates information about all kinds of service centres.
Owned through a 100% subsidiary called Auto Digitech Pvt Ltd, Auto Digitech Pvt
Ltd, Carworkz is currently piloted in 4 locations across Mumbai (Powai, Kandivali,
Malad and Goregaon), with plans to expand to other cities in the near future.
Studies show that over 80% of cars are in need of service or repair, but only 52% of
the owners service their cars seasonally. Many owners are not interested in
preventive maintenance beyond fluid checks & tyres. Today, those who seek to
service their car - particularly in Indian Metro Cities - are met with a plethora of
options - Authorised Service Centers (ASC), Local Independent Garages (IGs) and
organized Multibrand chains (MBCs). ASCs bring the promise of better quality parts
and a certain degree of reliability, but charge significantly higher costs of servicing
compared to the unorganised sectors. This causes price sensitive customers to
switch to the unorganised players, often relying on personal and long-term
relationships. But there are also frequent anecdotes of people getting duped with
duplicate spare parts, shoddy servicing standards, bloated estimates and so on. The
root cause of this problem is the ignorance of consumers about the issues faced by
their cars.
Can Mahindra disrupt this situation, just in time before a likely boom in the
market?
The success of aggregators in hotels, taxis and air-tickets has shown how qualityassured access finds great consumer demand. In this backdrop, Carworkz aspires
to be the go-to application for all needs pertaining to the personal vehicle - from
finding a good workshop, estimating the job cost, understanding the lingo of the
trade (in this case, the mechanics) or even increasing awareness about servicing the
car itself.

Broadvision Perspectives Client Confidential

2 of 3

Mahindra War Room 2016

MFCS Business Caselet

Based on this background, formulate the Click and Brick strategy for MFCS
and Carworkz.

What should be the Carworkz value proposition for Car owners and workshop
owners?

What will be the Carworkz differentiation strategy compared to other


aggregator apps and apps providing service on-demand?

Identify how the Click & Mortar play of MFCS can be leveraged to bring
significant competitive advantages.

Submit a detailed business model outlining the monetization and revenue


model, marketing plan and expansion plan for Carworkz for next 2 to 3 years

Broadvision Perspectives Client Confidential

3 of 3