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Edition: 7 | Friday, 2 November 2012

www.qasaconsulting.com

Content

South East AsiaAutomotive

Summit 2012


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Aftersales Market: Strengthening the roleof Automotive Independent Workshop

Joko WiyonoManaging Director

Qasa Strategic Consulting

South East Asia Automotive Summit, 2012

(WorkinProgress)


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industry with Indonesia and Thailand as keymarket drivers

Brunai

Indonesia

Malaysia

Philippines

Singapore

Thailand

Vietnam10

40

90

140

190240

290

340

390

20 10 10 20 30 40 50 60 70

MarketMaturity,2011

GDPPerCapita(000USD)

VehiclesPe

netration

Brunai and Singapore: MatureMalaysia: Almost MatureVietnam and the Philippines: FuturePotentialIndonesia and Thailand: Growing Market


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Automotive sales in SE has increasedsignificantly

0

200

400

600

800

1000

1200

1400

Brunai Indonesia Malaysia Philippines Singapore Thailand Vietnam

2009 2010 2011 2012

In the last 4 years, as many as 10,3 million cars are added tothe parc in 6 SE Countries.

About 33% additional cars are in Thailand and 31% inIndonesia.

In the case of Indonesia, about 56% of additional cars are inMPV


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Future Economic of the region ispromising, expect higher sales in near future

Population GDP/cap GR (2009-11) 2012-16

Brunai 0.425 38.534 1,9% n/a

Indonesia 241.030 3.512 6,1% 7%

Malaysia 28.553 10.085 5,1% 5%

Philippines 95.856 2.345 3,7% 5%

Singapore 4.740 60.500 4,9% 5%Thailand 64.076 5.395 0,9% 5%

Vietnam 89.316 1.374 5,9% 6%

The industry expects at least >3 million units new vehiclesadded to the market in 2015.

InIndonesia

alonetherell

bean

additionalof

1,6million

carsin2015

The industry should keep up with aftersalesservice facilities (quan and qual) to ensurecustomer has good access to the service


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customer in selecting car brand theypurchase...

an area that a car brand connects with its customer an area that the brand communicates trust to

customer

an area to maintain reason to buy for the brand big business that often being neglected by auto

maker

So, the aftersales service is NOTcost center!!

Aftersalesserviceis:

t t t


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urrent y, capac ty o aut or zeaftersales service is still limited.... 85% ofpost-warranty repair are performed by Independent Workshop

227

181

197

235

79

30

100

32

83

29

4540

TOYOTA DAIHATSU MITSUBISHI SUZUKI NISSAN HINO HONDA MAZDA ISUZU KIA HYUNDAI FORD

#AuthorizedWorkshop2012*)

Things often complained bycustomer:

High bill charges (componentsand labour costs are equallexpenssive) and longqueu, especially during weekend

*)somefiguresstillneedvalidation

Major challange is network coverage!!


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Independent workshop as alternativeextension of car manufacturer for improving

Aftersales service to customer

Ownership is highly fragmented

Family owned and managed No applicable standard service Multi sources parts -- ready

stock only for high moving parts

High degree variation in termsof #mechanics and skills Equipments and facilities

Service level

Major customers: ageingcars, low cost cars after

warranty period is off

5% 1%

80%

13%

1%

Est. Independent WorkshopPopulation

Franchised

Workshop

QuickFit

Independent

Workshop

SparepartShop

An estimate of 30-35,000 workshops national wid

Source:EstiatedformQasaConsultingoutletscensus

Characteristics:


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Sthrengthening Role of IndependentWorkshop

An innovative mutualcooperation workshopconcept should be developed

Empowering IndependentWorkshop to keep up withgrowth of new cars on theroad

CarMaker

AuthorizedWorkshop

(currentformat)

Tier1:FullyCertified

Workshop

Tier2:Certified

WorkshopforQuickService

Mechanic skills Genuine

(recommended)parts supply system

Minimum standard

servicerequirements

Pricing

Standard

ofservice

Periodical

Service

Audit

Building new authorized workshop requires extensive investment


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END OF THE PRESENTATION

Thank you....


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And therell be an additional of 3 million unitsevery year...

Vehicles Parc has been double in .. years

17,591

9,605

2,996

10,101

1,754

Brunai Indonesia Malaysia Philippines Singapore Thailand Vietnam

VehicleParc,2011

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