Challenges With Automobile Repair In India
Do we have the freedom to choose how and where we get our vehicle’s repaired or serviced? Do you agree that automobile manufacturers and authorised dealers force us into a situation where our freedom of choice is restricted?
This is because automobile makers are increasingly adopting complex designs and embracing economic, technological and legal strategies restricting vehicle repairs by Independent Repairers and third-party repair services.
The manufacturers of our vehicles do not want us or an independent garage to take up repairs on “their” products. Manufacturers prefer customers to utilise their repair networks, where they have a monopoly on repair. Manufacturers want to control the repair networks but also want you to buy a new product instead of repairing them.
The auto aftermarket in India is anti-competitive. Challenges include:
Exclusive contracts and/or arrangements between (a) Automobile Manufacturers (OEM) and their Dealers (b) OEMs and Auto Component Manufacturers (c) OEMs, Dealers and Insurers
Restriction by OEMs on sale of Original Spare Parts to Independent Repairers
Non-cooperation of Dealers in the sale of Original Spares to Independent Repairers
Exclusion of Independent Repairers in the repair and maintenance of vehicles while under Manufacturer Warranty or Extended Warranty
Preferential allocation of body repair work by Insurers to Dealers vs. Independent Repairers; Insurers also offer disadvantaged service pricing (substantially lower than to Dealers) allocation to Independent Repairers
Vehicles have become technologically complex along with increased use of electronics & software. Thus, repair and maintenance of the vehicle by Independent Repairers has become a challenge. Without access to technical specifications and repair procedures, spare part catalogues, diagnostic systems, special tools, replacement parts and training, Independent Repairers are disadvantaged in the repair and maintenance of vehicles.
