Post Covid World for Automobile Servicing

Allowing automobile dealerships from May 11 has been welcome decision across India. Service centers have been sitting on vehicles to be delivered, to be repaired and serviced but not delivered since Lock down. Due to lock down, Automobile industry registered zero sales in April 2020. Despite automobile service being an essential service in USA, India did not classify automobile servicing as essential service. It has allowed the service centers to be open in non-containment zones since May 11.

Hyundai Managing Director, Mr.S.S. Kim said recently in a interview to IANS that the Post Covid world might see more push towards digital solutions. Hyundai’s Sriperumbudur plant has rolled out 200 cars on its first day of reopening on May 8th. Hyundai announced that it had made retail sales of 170 cars in the past two days, apart from 500 bookings in its 255 dealer showrooms.

Hyundai has launched “click to buy” portal which allows customers to buy a car with minimal documentation and home delivery option. Customers can opt for remote demonstrations. Hyundai care app also allows to book service appointment. Hyundai is accepting service request through Whats app and phone call to dealers as well.

Hyundai Care:

Hyundai India asked its dealers to sanitize all customer touchpoints in showrooms and in service centers, there have been additional guidelines in accepting a car and delivering a car. Hyundai has also instructed all its outlet managers for thermal screening to be conducted for employees and visitors.

Hyundai will be supplying 6.8 lakh face masks, 20,000 500 ml bottles along with 1.5 lakh 100 ml hand sanitizers to its outlets. Post Covid Lock down Compliance is changing the way automobile servicing and sales are done currently. Hyundai recently issued “Hyundai Care” guidelines for all its dealer service centers. Return to life is not exactly returning to the older servicing version. A car coming to the service center is initially sanitized before employees take it inside for servicing. It is again sanitized before delivery. Thermal screening is mandatory for both employees and visitors. For sales, all customer touch points, lounges, etc., are to be regularly sanitized. Hyundai will be training all its employees in compliance. Dealers agree that that it is additional work but safety of employees is also a high priority along with safety of customers & appreciate the company for initiating such moves.

Balance sheets are hard hit for Automobile dealers. U.S.Auto dealers were given forgivable loans for paycheck protection. Employees in Indian automobile dealerships took a pay cut for April to reduce recurring expenses. The service centers are operating with less staff currently till lock down is over. Automobile industry is already facing technological disruption due to on-demand cab booking services& electric vehicles. Auto dealers are focusing on the hinterland& tier-3 towns since most of the on-demand booking services operate in the metro regions only.