Passenger Vehicle Servicing Market in the UAE—Outlook and Trends 2017

Scope & Limitations

Advent of new technologies to shape the evolution of vehicle servicing both in terms of solutions and delivery

Mega Trends impacting Service Bays:

Market Size of Vehicle Servicing in the UAE:

Competitive Landscape:

27% of vehicle servicing revenue comes from Collision repair, majorly governed by Insurance companies in the UAE

OEM ASC customer retention is 80-90% for the first two years, especially for vehicles that undergo collision repair

OEM authorised workshops must reduce labour costs by reducing standard replacement time in total invoice value of repairs

Third party workshops take half the time for repairs as against AW: therefore vehicle owners prefer not to use the AW

OEM workshops mostly use new & genuine parts for collision repair regardless of vehicle age leading to increase in invoice value vs. third party workshops

Third party workshops opt for counterfeit or used body parts to reduce the overall invoice value: affecting the sales of original OE parts

Insurance companies assign collision repair job to workshops: Important for OEMS to have strategic tie-ups with Insurance companies

Insurance companies insist on using original used parts for vehicles above 2 years of ownership. This hampers sales of original parts

Key Success factors for Multi-brand workshop

Regulation & aggregation of independent/3rd-party workshops imperative; technician qualifications to be enhanced, strategic insurance tie-ups required

Technology in the Bay: Garage of Tomorrow, Evolution Overview, 2016 and 2020

Technology in the Bay: Garage of Tomorrow, Global, 2021

OEM authorised workshops have to become much more competitive in terms of cost and time taken for repair to retain their customers

Maximise opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities

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