Indonesia Automotive Aftermarket Service Market Outlook to 2029

The report titled "Indonesia Automotive Aftermarket Service Market Outlook to 2029 - By Market Structure, By Service Providers, By Types of Services, By Vehicle Age, By Consumer Age, and By Region" provides a comprehensive analysis of the automotive aftermarket service market in Indonesia. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation; trends and developments, regulatory landscape, customer level profiling, issues and challenges, and comparative landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players in the market. The report concludes with future market projections based on service revenue, by market, service types, region, cause and effect relationship, and success case studies highlighting the major opportunities and cautions.

Indonesia Automotive Aftermarket Service Market Overview and Size

The Indonesia automotive aftermarket service market grew at a value of IDR 85 Trillion in 2023, driven by increasing road vehicles, a greater consciousness toward vehicle maintenance, and the increasing availability of both preventive and corrective services. The market is highly concentrated, with the major players being Auto2000, Shop&Drive, CARfix, Astra Otoparts, and independent garages, which are known for their huge networks, diverse portfolios, and customer-centric solutions.

Auto2000 introduces new service packages in the coming year, 2023, to improve customers' experience; the services have been channeled to preventive maintenance services. The main markets would still be Jakarta and Surabaya due to the high ownership rates in those cities and proper automotive infrastructure.

Market Size for Indonesia Automotive Aftermarket Service Industry on the Basis of Revenue in IDR Billion, 2018-2024

What Factors are Leading to the Growth of Indonesia Automotive Aftermarket Service Market:

• Economic Factors: Economic growth in Indonesia has strengthened demand for automotive aftermarket services. Vehicle ownership tends to be on the rise, and a high contribution from the middle class in 2023 also contributed notably to the growth of this sector, as most vehicle owners reached out for cheaper ways of maintaining and repairing their vehicles. Many consumers prefer extending the life of their vehicles through aftermarket services instead of purchasing new ones.

• Increasing Vehicle Population: The overall increase of vehicles in Indonesia's roads due to the growing middle-income population and urbanization drives the aftermarket service market. With increasing vehicle ownership, regular maintenance and repairs are on the rise, and even upgrades have broadened their horizons in major cities like Jakarta, Surabaya, and Bandung.

• Digitalization: Digitalization is about the development of digital platforms that have shaped the outlook of the Indonesian aftermarket service by making it very easy for consumers to access these services. In 2023 alone, 30% of all bookings made in the aftermarket service were booked through digital platforms, implying a modern trend of convenience through online ways. These platforms make it possible for customers to compare prices of services, read customer reviews, and schedule an appointment with an auto technician, therefore providing transparency and comfort, and driving market growth.

Which Industry Challenges Have Impacted the Growth for Indonesia Automotive Aftermarket Service Market:

• Quality and Trust Issues: Quality and trust issues remain one of the biggest concerns in Indonesia regarding the quality of aftermarket services, counterfeit, or low-quality parts being used. Indeed, in a recent industry survey, 45% of consumers claimed not to use independent garages for fear of low-quality repairs using non-genuine parts. A trust issue is affecting customer retention and could well deter a considerable segment of possible users.

• Challenges from Regulations: Major challenges include stern regulations regarding vehicle emissions and safety standards. In 2023, about 18% of vehicles failed to meet the minimum regulatory requirement for maintenance services, mainly older models. These are very costly for service providers to provide support for, hence making it difficult for certain kinds of vehicles and adding to the compliance overhead.

• Shortage of Skilled Labor: The lack of skilled technicians has adversely impacted the growth in Indonesia's automotive aftermarket service industry. Almost 40% of the service providers reported that hiring qualified personnel was difficult, affecting their capacity to offer advanced repairs and maintenance services, especially for newer vehicle models that need specialized expertise.

What are the Regulations and Initiatives which have Governed the Indonesia Automotive Aftermarket Service Market:

• Vehicle Inspection Regulations: The Indonesian government requires periodic vehicle inspections to be carried out to ensure that vehicles meet minimum requisite safety and environmental standards. The inspections involve brakes, tires, and emissions, among other things. In 2023, about 70% of the vehicles passed during the first attempt, which indicates a relatively high level of compliance by the vehicles in the market.

• Regulations on Replacement Parts: The government has set up regulations requiring the use of certified replacement parts for repairs and maintenance, especially in critical systems such as brakes and airbags. These are intended to improve safety and reduce the use of counterfeit or substandard parts. In 2023, the enforcement of these rules raised demand for certified parts, guaranteeing better quality control across the industry.

• Government Incentives for Electric Vehicle Services: At a time when there is an ongoing rush towards electric vehicle adoption in Indonesia, the country's government is initiating various programs on the ground such as subsidies to promote the setting-up of EV service centers and reductions in taxes related to parts which are exclusively applicable in the maintenance of EVs. In 2023, this segment accounted for around 2% in the revenue created in the after-sale services, but this is estimated to increase soon with these given incentives.

Indonesia Automotive Aftermarket Service Market Segmentation

• By Market Structure: Organized service centres dominate the market. They have large service networks helped by certified technicians and original spare parts. The centre, therefore, would attract customers seeking reliable and good quality of services at an assurance of warranty covers. Simultaneously, independent garages have taken a major chunk of the market for two reasons: their competitiveness in prices, especially in suburban and rural areas where big service centers are usually not available. Local garages are also preferred for their personalized service and flexible payment options, which appeal to cost-conscious customers.

By Type of Services: Pre-service maintenance oil changes and rotations top the list since more consumers maintain their vehicles running longer by lengthening the lifespan of their cars. Corrective repairs also contribute to a great extent to the business, including brake repairs or engine overhauls, for which older ones are more in demand. Car accessories and upgrades comprise much of this market, but primarily from the younger consumers who wish to personalize their own vehicles.

By Service Providers: Auto2000 leads the market with its great reputation in full-service packages, wide service networks, and very high customer satisfaction. Astra Otoparts and Shop&Drive are also major competitors as they have taken the quality of service seriously while offering a vast array of products. CARfix is an emerging player that specializes in competitive pricing and speedy service delivery, especially in cities.

Competitive Landscape in Indonesia Automotive Aftermarket Service Market

The Indonesia automotive aftermarket service market is highly fragmented, with several established players leading the space. However, the entry of new digital platforms and the proliferation of independent garages have diversified the market, offering consumers a wider array of choices and services. Major players include Auto2000, Shop&Drive, CARfix, and Astra Otoparts, which dominate the organized sector, while smaller independent garages thrive in the unorganized sector.

Some recent competitor trends and key information about competitors include:

• Auto2000: With a wide network of service centers and customer-focused service packages, Auto2000 has been able to maintain its strong position in the market. In 2023, preventive maintenance service bookings increased by 12% due to efforts to promote regular vehicle upkeep. Their focus on integrating digital tools into the service booking process has also improved customer convenience.

• Shop&Drive: Shop&Drive is one of the market leaders in the automotive services sector. Revenues for this company have grown 20% over the year 2023, a fact that majorly contributed due to their well-calculated expansion plan to suburban territories and new offerings like on-the-spot vehicle servicing, where the speed and reliability of their services have started attracting more of the urban dwellers.

• CARfix: As the services of CARfix are cheaper compared to others with faster service. Customer flow within the company experienced a 15% increase within 2023, especially during metropolitan cities, in terms of Jakarta and Semarang. By this method, CARfix targeted budget-buyers and already obtained a marvelous market share at the capital of metropolitan areas.

• Astra Otoparts: One of the biggest distributors of automotive parts and services in the country, Astra Otoparts has spread its service bouquet through new lines of products along with a larger national network of its services. By the end of 2023, Astra Otoparts had seen an increase of 10% in premium parts and service revenue due to better demand for quality repairs, authentic OEM parts.

What Lies Ahead for Indonesia Automotive Aftermarket Service Market?

The Indonesia automotive aftermarket service market is expected to witness steady growth with a healthy CAGR throughout the forecast period, up to 2029. Growth will be driven by increasing vehicle ownership, consumer awareness of regular vehicle maintenance, and advancements in digital service platforms.

• Shift to Electric Vehicles: While the Indonesian government is still encouraging electric mobility, there should be a gradual ramp-up in demand for specialized EV maintenance and repair services. This will be further helped through incentives offered by the government for electric vehicles and building of more EV-related infrastructure such as charging stations and service centers capable of handling EV-specific repairs.

• Technology Integration: Advanced technologies like AI, IoT, and big data analytics will transform the aftermarket service industry in diagnostics, maintenance, and customer service. Improved diagnostics, efficient servicing, and increased transparency towards customers will result in more trust and loyalty among consumers.

• Organized Service Centers: The market is shifting more towards organized service centers that offer both certified parts and skilled technicians for warranty-backed services. Organized service centers have seen a greater demand in urban markets where quality and reliability are looked upon by the consumers. Certified pre-owned vehicle programs will also accelerate growth in the organized service center because it gives the customers assurance of quality and after-sales service.

• Focus on Sustainable Practices: The Indonesia Automotive Aftermarket Service Market is going on to add a sustainable note as service providers increasingly adopt environmentally friendly practices: using recycled materials for repairs, using energy-efficient service processes, and reducing wastes. As environmental awareness among consumers continues to increase, service centers will likely have a competitive advantage if they highlight sustainability practices.

Future Outlook and Projections for Indonesia Multi Brand Car Service Market on the Basis of Revenues in USD Million, 2024-2029

Indonesia Automotive Aftermarket Service Market Segmentation

• By Market Structure:

  • Auction Companies

  • C2C

  • Local Dealers

  • Multi-brand Non-franchise Dealerships

  • OEM Certified Dealers

  • Organized Sector

  • Unorganized Sector

  • Commercial Vehicles

• By Manufacturer:

  • Honda

  • Toyota

  • Daihatsu

  • Mitsubishi

  • Nissan

  • Hyundai

  • BMW

  • Mercedes-Benz

• By Type of Services:

  • Preventive Maintenance

  • Corrective Repairs

  • Accessories

• By Age of Vehicle:

  • 5 years

  • 1-2 years

  • 3-5 years

• By Age of Consumer:

  • 18-34

  • 35-54

  • 55+

• By Region:

  • Northern

  • Southern

  • Central

  • Western

  • Eastern

Players Mentioned in the Report:

• Auto2000

• Shop&Drive

• Bosch Car Service Indonesia

• Supercar.id

• Doctor Mobil

• MekaCarCare

• Mobil88

• Otoklix

• Carfix

• Ahass (Honda Authorized Service Station)

Key Target Audience:

• Automotive Service Providers

• Vehicle Owners

• Digital Service Platforms

• Regulatory Bodies

• Research and Development Institutions

Time Period:

• Historical Period: 2018-2023

• Base Year: 2024

• Forecast Period: 2024-2029