Modular consultancy opportunity at Indian automobile dealers – a platform strategy

Abstract

There are over Fifteen thousand automobile dealers in India, having over 26500 outlets representing the entire automobile retail industry (as per the data from the Federation of Automobile Dealers Association). The automobile dealership operation is complex, and it involves various cost/profits centres like vehicle sales, service, spares, accessories, and other allied businesses. The vast size of the industry, varying capacities and competencies of the automobile dealership have led to many process gaps and inefficiencies in operations and strategy. There are huge opportunities in the automobile dealership industry to tap into the unrealized potential to bring operational efficiency, cost optimization and to increase profitability. Lack of skilled manpower, internal incompetency, know-how, capacity, complex operations and push from OEMs for adherence to the exclusive guidelines lead to potential operation gaps at the automobile dealerships. They, further, drive the dealer fraternity to seek external expertise to address such challenges. Size of the dealerships does not allow them to engage traditional consultants due to higher engagement costs. The traditional consultants offer up to 100% customized and exclusive solutions to the clients which increases the cost for the consultants and, therefore, the cost to the clients.