Import car brands are accelerating repair service campaigns in recent days, raising interest in why they are engrossed more in repair services than in sales.
According to import car industry sources on June 12, several import car brands are actively carrying out repair service campaigns.
Mostly, they have such campaigns on a quarterly or seasonal basis but some perform it on a monthly basis. The main factors behind import car brands’ obsession with repair services include they chalk up higher profits through after sales services.
The prevailing view is that they shift their focus toward after-sales service profits as their sales margins decline due to stiffer competition.
A German brand, for example, showed that the profit margin of its sales averaged at 0.4 percent last year, while that of repair services stood at 11.4 percent, with the share of repair services in its total operating profit estimated at 56.2 percent.
