Chennai, November 16, 2012: Multi-brand service provider CarZ has set up its first outlet in Tamil Nadu. The unit in Mettukuppam, Chennai, takes the company’s presence in four States (Karnataka, Andhra Pradesh, Kerala and Tamil Nadu) with 17 outlets. It has announced an aggressive pan-India plan of 300 outlets in the next five years including another 10 centers in Tamil Nadu in the next 12 to 24 months, with an investment of close to Rs 11 crore.
The Hyderabad-based company has set up operations in Chennai for strategic reasons. Of the 14 lakh cars in Tamil Nadu, Chennai accounts for nearly 50 percent and the demand for quality service dealer network is on the rise.
According to Venu Donepudi, managing director of CarZ, “Every fifth person in Tamil Nadu owns a vehicle, which augurs well for us. Chennai, which has about 37 lakh vehicles with 70 per cent being two-wheelers, there is a dearth of sufficient quality dealership networks to address them. It is a huge market opportunity.”
Vijay Gummadi, CEO of CarZ, added, “Chennai is a very mature market, with a discerning set of customers with high expectations on quality and value. It is our endeavour to provide complete auto care solutions including preventive maintenance, electrical and mechanical repair, accident repair – denting and painting, tyres and services, battery, variety of styling and performance accessories, interior and exterior detailing.”
CarZ says it has partnered with Akzonobel to outsource all full body painting requirements for its cars; with BASF for good quality paint for full-body painting; and with HPCL for supply of lubes and oil. It also uses the advanced StockTrack, software for inventory management for 340 models of cars of different brands and multiple variants.
The car service business in India, estimated to be worth around Rs 30,000-crore, is dominated by OEM-authorised service centres and unorganized players. Latest trends indicate that car servicing is moving away from OEM dealer networks to more cost–efficient and professionally run multi-brand players.
Mahindra & Mahindra with its First Choice servicing business and the Jagdish Khattar-promoted Carnation have been contributing towards making the automobile servicing business more organised.