Implications of the Right to Repair Act for Multi-brand Car Services in India.

By Narsimha Jayakumar, CEO, Greaves Retail

The 'Right to Repair' initiative, introduced by India's Ministry of Consumer Affairs (MCA), seeks to tackle the issues arising from the dominance of manufacturers in controlling repair services. ? Consumers often face challenges in a market where this control leads to elevated costs, restricted competition, and prolonged waiting periods, including resource wastage and heightened maintenance expenses.? This initiative is designed to improve the repair experience by ensuring consumers can access warranty and post-sales information, promoting product longevity, and facilitating more cost-effective repair options.

The influence of this movement has been significant, especially within the automotive sector.? It has driven certain manufacturers to streamline repair procedures for customers and independent repair shops, disrupting the conventional control that manufacturers typically held over repair decisions.? Nevertheless, this has prompted corporations to reassess their business models, contemplating potential product plans and intellectual property rights adjustments.

In India, the aftermarket sector is rapidly expanding, contributing significantly to the economy.? Despite constituting only 18% of the components market, it injects approximately $10.1 billion (Rs 83,294 crore) into the Indian economy.? This growth presents a promising opportunity for small repair shops, crucial for local economies.? As the aftermarket sector expands, local businesses will likely experience increased demand, leading to job creation and economic growth.? Consumers can anticipate lower costs and more efficient vehicle servicing and repairs.

The 'Right to Repair' Act offers substantial benefits to multi-brand showrooms and spare parts businesses.? It allows these providers to offer to annual maintenance contracts for vehicles, including 3-wheelers and 4-wheelers, using quality-approved parts and on-site servicing.? This reduces turnaround time and reduces turnaround time and enhances safety by preventing accidents caused by non-approved parts.? The act further boosts the production and sales of spare parts for organized multi-brand showroom service providers, positively impacting the entire automotive ecosystem.

India's automotive service industry is undergoing a significant transformation due to the legislative shift propelled by the 'Right to Repair' initiative.? This change makes the sector more competitive, open, and environmentally conscious.? Beyond its direct influence on repairs, the initiative signals a commitment to sustainability, instigating positive shifts in consumer experiences and business practices across various facets of the automotive industry.