I N D U ST R I A L M A R K E T S
Skill Gaps In Indian Automotive Service Sector
KPMG IN INDIA
Foreword from CII
Over the past decade, India’s automotive sector has emerged as one of the most significant in the country’s economy, accounting for nearly 5 percent of the GDP Since the economic liberalization of the 1990s, the . country has seen a steady influx of global automotive players into India and increasing competition has triggered improvements in product range, quality, technology and service. Automotive service is a key pillar supporting the growth of the industry. As the industry grows and transforms, it is imperative that the service aspect evolves correspondingly. To focus on this critical area, CII has been conducting the AutoServ conferences, which seeks to bring together different players from across the automotive service industry, to exchange views and develop a common agenda for growth. Given the evolution in vehicle technology, product range and quality in the Indian market, the skills required to service vehicles have also changed. Today’s vehicles require sophisticated tools and equipment for problem diagnosis and correction, which can be handled only by trained technicians. Does the industry have adequately trained manpower to support the required growth in automotive servicing? Where are the gaps and how can they be addressed? To focus on these critical aspects, CII had asked KPMG to prepare this report on Skill Gaps in Indian Automotive Servicing, to serve as a background note to AutoServ 2008. Manpower capability is a critical enabler for development of automotive servicing. At the same time, concerted skill development initiatives will also create a larger pool of employable blue collar employees, which will aid in the growth of overall employment levels in the industry and the nation. This report is thus a timely initiative to throw light on this important aspect. R Dinesh Confederation of Indian Industry (CII) Event Chairman AutoServ 2008
Foreword from KPMG
India’s growing automotive sector has been one of the key success stories in the country’s economy over the past decade. The automotive sector reflects liberalization and in turn globalization in its true sense. In India the automotive sector contributes to roughly 5 percent of India’s GDP today, and is targeted to become 10 percent of GDP by 2016. One of the key enablers for this industry’s growth and consequent contribution to GDP is Automotive Servicing. Given an extremely competitive market scenario where product features and pricing are increasingly in capable of differentiating, Service depth and quality surfaces as a key differentiator and an effective tool to retain customers. Parellely, rapid improvement in vehicle technology and proliferation of multiple products and variants adds complexity to any existing model. Servicing of modern vehicles requires quite a different set of skills and technology as compared to the past. KPMG has been actively tracking the evolving automotive market in India, and through its thought leadership and association with industry bodies, has contributed regularly to stimulating ideas and discussions in driving this change. We have a strong and valued relationship with CII and see this association as Knowledge Partner for AutoServ 2008 as a further step. It is our pleasure to present this report on a topic of interest and timely relevance to the automotive industry in India today.
Yezdi Nagporewalla Head - Industrial Markets KPMG in India
2 Getting the right talent is an issue
4.2 Number of new models 3.3 Training – key focus area.1 Planning for manpower 4.2.1 Manpower availability – largely enough in numbers.2 Key challenges and success factors for effective service
3.3 Need for improved customer service 3.2.4 Manpower attrition is a key cause for concern
5 Addressing the gaps – what can be done?
5.3 Perceived gap in both remuneration and image
11 12 14
4.1 Key success factors
4 Skill Gaps in Servicing
4.2.1 Collaboration with institutes – the need of the hour 5.1. but not in skills 4.1 Key drivers for growth 2.1.2 The imperative for effective Service
3 Service – the key differentiator
3.2. but increasing capacity constraints 4.2 Employee retention requires a combination of factors
.1 Automotive servicing is evolving
3.1.Table of Contents
1 Background 2 The Indian Automotive Market is getting increasingly crowded
2.4 Changes in vehicle technology
07 07 07 08
3.1.2 Diagnostics and Body Repair skills are key gap areas 4.1 Spreading the service network into new markets 3.
Of the above. representing a wide cross section of the industry.
1 Automotive Mission Plan 2016 (Dept. the third pillar – the availability of skilled manpower to service the ever growing vehicle population – is seen as a critical area where there is a gap between the industry’s requirements and supply in the market. KPMG has prepared this report on Skill Gaps in India’s Automotive Service. As population of vehicles increases. add to the challenges of providing efficient service.in). the need for an efficient service network becomes important.01
India’s automotive industry is one of the key drivers of the country’s economy. as well as independent service providers. and is actively involved in promoting its growth. With this background. at a CAGR of 27 percent over the past 5 years. KPMG research and analysis 2 SIAM data 2 ACMA data – www. the . AutoServ 2008.nic.com
.dhi. In addition. it accounts for close to 5 percent of India’s GDP1 Over the past 5 years (2002-03 to 2007-08). to serve as a background paper to CII’s conference on Automotive Service. The report has been prepared based largely on primary inputs from senior service personnel across several OEMs and dealerships. with proper machinery. of Heavy Industries – www.5 percent CAGR.acmainfo.3 . The government’s Automotive Mission Plan 2016 envisages the industry to grow to a size of USD 145 billion by 2016. and had a turnover of USD 18 billion in 2007-08. the new vehicles sold add to the overall vehicle population that needs to be serviced and maintained. An effective service network is built on three key pillars: 1 Service infrastructure – adequate workshops at the right locations. tools and other facilities 2 Availability of spare parts 3 Availability of skilled manpower. Every year. rapid improvement in vehicle technology and the number of new models being introduced each year. so as to contribute 10 percent of GDP . as scrapping of vehicles is low.2 The Auto Components industry has grown in tandem. At an estimated size of USD 38 billion. with both domestic and export markets growing during the period. industry has seen strong overall growth of 11.2 The Government of India recognizes the significance of the automotive industry.
in passenger vehicles alone. driven by imperatives of customer demand. with OEMs looking to bring out new models and variants almost every year.
Source: SIAM data (www. with new materials. Today.02
2 The Indian automotive market is getting increasingly crowded
The Indian auto industry (vehicles) has grown at a CAGR of close to 12 percent over the past 5 years. new features and increasing share of electronics in new models.siamindia. fighting for share in the crowded market space5.com)
While the sale of vehicles has been increasing steadily over the years. In addition. the market has grown to a situation where many major global players are present in the country. In addition. while exports of vehicles have grown at nearly 27 percent over the same period.
4 KPMG Research. From just around 10 OEMs in the 1980s. vehicle technology has undergone significant improvement over the past decade. The domestic market has grown at a CAGR of 9 percent. The pace of new product introduction has also quickened. For example. evolving emission and safety regulations and improvement in technology. the range of models operating in the Indian market has grown manifold. the automotive industry in India has also been getting increasingly crowded.siamindia. with a plethora of models competing for market share.com) 5 KPMG research (data from various OEM websites)
. there are over 35 OEMs across product categories in India4. there are over 50 basic models and hundreds of variants available in the market today. SIAM (www.
6 Automotive Mission Plan 2016 (www.dhi. This. India has a large consuming class population of over 450 million6 (see chart). the penetration level in India – 51 per 1000 – is low compared to other markets such as Indonesia.
Source: NCAER data
In spite of this growth. India has 8 vehicles per 1000 people. coupled with the ease in financing of vehicles. This gap indicates the potential for continued growth in the industry over the long term. which is lower than countries like China and Thailand. even in comparison to other Asian markets. In passenger vehicles.1 Key drivers for growth
The above developments have been driven by several factors. At present.nic. Sustained GDP growth over the last decade has led to an increase in overall income levels. convenience and status. has been the primary driver for growth in vehicle sales in India. In two wheelers too. and a change in consumer outlook. but the key drivers have been the sustained and rapid growth in the country’s economy and changing customer preferences.03
2. for example. Malaysia and Thailand (see chart)7. vehicle penetration in India is quite small. which has an increasing propensity to spend on products for personal care.in) 7 KPMG Research (various sources)
but also ensure high levels of service quality and delivery. In this scenario. with little differentiation among products within the same price band. providing effective after sales service for vehicles has assumed increased importance for OEMs in India. The wide range of models and variants on offer. The proliferation of variants and rapidly evolving product technology are other dimensions that add to the challenge. As a result. also encourages customers to switch from one brand to another easily. retaining customer loyalty is a key concern for manufacturers in India. and expects the same levels of quality in products and services.2 The imperative for effective service
The Indian automotive customer today is well tuned to global markets and products.
. Not only do manufacturers need to provide a range of services and have a widespread service network to cater to the ever increasing number of vehicles on the road. to retain customers.04
through providing training. At the same time. many manufacturers are also actively developing independent workshops into authorized service centers. in fact. Given the sizeable vehicle population in this category.
8 Source: primary interviews with industry players. 2002-03 9 Source: primary interviews with industry players. by respondents across the industry. quality and delivery of after sales service has assumed critical importance for manufacturers. the size of the automotive service market in India is estimated at between USD 8 billion to USD 10 billion10.
Industry players agree that servicing today is a critical imperative to remain competitive. quality of service was ranked as one of the key factors to retain customers. In terms of turnover.05
3 Service – the key differentiator
In view of the evolution in customer preferences and increased competitive pressures in the market. many of them feel it is the most critical factor for competitiveness (see chart)9. feedback from industry players indicates that most customers do not depend on the authorized service network for vehicles beyond about 7 years of age. but switch to local garages. In addition to the service outlets of authorized dealers. 2008 10 KPMG research and analysis
. Estimates put the share of authorized service outlets at around 50 percent. it is evident that automotive servicing in India is still largely unorganized. OEMs are focused on improving the reach and quality of their service networks. tools and parts. In a study carried out by KPMG earlier8.
improvement in service quality and customer service at authorized outlets and initiatives taken by OEMs and dealers for customer retention. customers today have an increasing preference to come back to authorized outlets for their service needs. Need to penetrate new markets / geographies 4. and the capacity of authorized serviced outlets. we asked respondents to rank these drivers in the order of importance / significance. 2008
. At the same time. is the entry of large organized players into the multi-brand. indicate that the trend is towards development of more organized service. post warranty service business (see box). As discussed earlier. the four major drivers11 for change are: 1. Others like Reliance Auto Zone. they seek to address an anticipated demand-supply gap between the required service capacity in the industry.
3. other independent players have also entered the organized automotive service sector. The above chart indicates the ranking.
11 Source: Interviews with industry players.1 Automotive servicing is evolving
Several trends are driving change in automotive servicing today. Need for improved customer service. Mahindra First Choice Services are more recent entrants. Driven by factors such as improved vehicle technology. Advent of independent multi-brand service providers – an emerging phenomenon While OEMs focus on increasing their network penetration across the country. Bosch Car Service and MyTVS have been established players in this segment for several years. Other new players planning entry into this segment include Altius Autoword and CarNation. As part of the primary study to prepare this report. Such independent players pose competition to authorized service outlets who seek to retain their customers throughout the vehicle lifecycle. Proliferation of models and variants 3.06
Recent trends in the industry. through offering post warranty services for multiple vehicle brands. Another phenomenon indicating the increasing levels of organized service. however. Changes in vehicle technology 2.
managing the time and cost involved in acquiring the required real estate and putting up the infrastructure and second.1 Spreading the service network into new markets
While the overall vehicle penetration in India is low. This would require increased availability of service outlets along highways. This underscores the need for consistently upgrading the technical and soft skills of service manpower. “Ten years ago. Building up the required skill and expertise across the range of products and technologies is a key challenge that OEMs are grappling with. across product segments. have made it easy for them to compare different manufacturers. the variety of choices available has made them more prone to switching loyalties if not completely satisfied. poor quality service or repeat complaints. As one respondent put it. where there is significant growth potential. The above phenomena are driving the need for players to increase the geographic spread of their service networks. In addition. are more aware and demanding. In many cases. service providers today are keenly focused on improving not only the technical aspect of servicing.
3. Public surveys like JD Powers CSI.1. the key metros and large cities are getting saturated. As a result.07
3. Continuous improvements are made in improving service quality. and cuts across brands. OEMs agree that customers today have less tolerance for delays. Service technicians today need to handle an ever increasing range of vehicles. SSI studies etc. customers used to be willing to come to our office and wait for long to meet a service engineer. but also the softer aspects of customer management. This poses an even greater challenge to independent multi-brand players. automotive customers. At the same time. As a result.
. as discussed earlier. recruiting and retaining skilled manpower in relatively remote areas. as the range of products they would need to handle is much larger.2 Number of new models
The rapid increase in number of new models and variants introduced by each OEM is another factor driving change in servicing. improvements in road infrastructure and inter-city road transport are expected to increase.1. This poses two key challenges – first. at their convenience” . new models incorporate improved technology as well. vehicle turnaround times and customer satisfaction. established players seeking to expand their market are looking to enter smaller towns and rural markets.1.3 Need for improved customer service
Today. Today they expect us to go and attend to them at their premises.
training and retaining a highly skilled workforce is a constant challenge. the following issues emerged as the critical ones impacting effective servicing:
Source: KPMG Research .08
3. oil changes. This underscores the importance of developing the right skill sets in the service manpower. In addition. For example. with which technicians need to be familiar. and steering systems. than modern vehicles do. 2008
. Modern vehicles have much more embedded electronic components and controls that require a higher degree of sophistication for testing and servicing. transmission. an increasing number of high end vehicles have features such as air-bags. automatic climate controls. faster replacement of maintenance parts.1. With improvement in technology. braking. etc. automotive service providers today face several challenges.
3. as well as special diagnostic tools and instruments.2 Key challenges and success factors for effective service
Given the above trends and imperatives. Acquiring. are controlled primarily by computers and electronic components. older generations of vehicles required more frequent engine tuning. etc. Today. with the increasing interest in alternate-fuel vehicles. such as engines. automotive service technicians in the future would need to learn the technology behind these vehicles and how to repair them. These vehicles could also be easily repaired or serviced by mechanics in local garages with basic tools. the frequency of regular servicing is coming down. global positioning systems. in a number of ways.4 Changes in vehicle technology
Improvement in vehicle technology is impacting the way in which vehicles are serviced. The top of mind issues for service executives across different segments have to do with service manpower.Interviews with industry players. Also. In our discussions with industry players. most automotive systems..
3. Across players. it creates a continuous need to recruit and train people. varying across different levels. Skills include not only technical skills. Lack of training is the next critical challenge. Expansion of service capacity and reach is a critical requirement. On one hand. reduce costs and increase customer satisfaction 3. The above assessment of the automotive service landscape clearly highlights that manpower availability and skills are the key challenges players face in providing quality service to their customers. this gets delayed due to difficulties in acquiring real estate and constructing the required infrastructure. as this figured in the list of top three challenges with every respondent. Effective project management to ensure timely expansion of network.09
Managing high levels of manpower churn emerged as the single biggest challenge. as this directly impacts service quality and delivery. Focus on softer aspects of customer management and innovate to retain customer loyalty 4. across different locations and different levels. While ensuring continuous skills upgradation for existing service manpower. instructors. players also need to provide training for new joiners. The need to expand the network creates additional pressure. In the remainder of this report. Continuous improvement in productivity and quality. several players feel that their service capacity – number of training facilities. especially to competition. just to maintain current levels of service. losing skilled and trained manpower. High manpower churn impacts players in different ways. these aspects are dealt with in detail. Ensuring availability of adequate numbers of skilled manpower. industry players identified three key success factors for automotive servicing: 1. etc – are likely to be under pressure to meet future training needs.2. Players need to ensure that expansion projects are managed efficiently to minimize time and cost over-runs. improve capacity utilization. average manpower turnover appeared to be in the order of 30-40 percent.1 Key success factors
In view of the scenario discussed above.
. Given the high levels of churn and need for expansion. At the same time. but also business management skills (for senior management) and customer management 2. to reduce turnaround times. impacts not only the quality of service but also the competitiveness of players. and typically.
each player uses his own norms for assessing the number of service bays to be added and the number of service personnel required at different levels.Developing and retaining the manpower. We have assessed the above aspects for manpower across three levels – Technicians.
4. Effective planning for the short. One aspect that impacts effective planning is the high levels of churn. medium and long term 2. This involves four aspects: 1.Providing effective training to ensure the skill sets are always updated and continuously upgraded 4. automotive servicing is also dependent on the quality of its manpower.
. These are discussed at length. Supervisors and Managers. below. which many players find difficult to cope with.Recruiting the right manpower (‘right’ both in terms of numbers and skill sets) 3. Based on the vehicle population projections.10
4 Skill gaps in servicing
As in any service industry.1 Planning for manpower
Most players plan their service requirements based on their assessment of the market potential and their targeted market share. to deliver effectively.
2. 3 Market For senior management levels. are recruited directly from Industrial Training Institutes (ITIs) or Polytechnics. service advisors and service managers. Most players absorb such fresh recruits after putting them through an induction and initial training period of about six months. Typically. especially at supervisor levels and technician levels. though for specific requirements. This is more applicable for middle and senior levels such as supervisors. 2008
. 2 Competition Given the high level of competition in the industry. but not in skills
Most players feel that they are able to get an adequate number of people to meet their planned requirements.2 Getting the right talent is an issue
Manpower for automotive servicing is typically recruited from three sources: 1 Institutes Entry level personnel – trainees and technicians.
4. as potential recruits. Such positions require engineering graduates. preferably with post graduate diplomas. However.11
Source: KPMG Research – Interviews with industry players. other trades like electricians may also be considered. getting people with the right skill sets is an issue. it is natural for players to look at trained manpower from their competition. most players advertise for positions and recruit from the market. with 8-10 years of experience.1 Manpower availability – largely enough in numbers. students of motor mechanic trade are preferred. which typically require diploma holders or graduates with three to five years of experience.
However. For this. diagnostic and troubleshooting. the types of services were segregated into four categories: 1 2 3 4 Regular / routine maintenance Diagnostics / trouble shooting Accident repairs / body work / painting Customer management.12
The perceived shortfall in numbers is largely in lower and middle levels – Technicians and Supervisors – where respondents anticipated a shortfall of between 30 percent and 50 percent. Most players have seen trained manpower with a few years of experience leaving for other opportunities. Hence. identify and rectify problems and also monitor and manage technicians under them. As discussed earlier. before they can be considered adequately skilled. there is an issue of churn. these personnel need to be able to understand modern vehicle technology. as many employees look for alternate career options once they are trained and gain some experience. as people prefer to seek more lucrative jobs in the Gulf countries after a few years of experience here. and vehicle testing are carried out. they are replaced with new recruits who need to be trained.
4.2 Diagnostics and body repair skills are key gap areas
Apart from the level-wise skill availability and gap discussed above. these recruits need to undergo a learning curve. Hence. in most cases. know how to use testing and diagnostic equipment.2. it is a constant effort to find skilled manpower at these levels. people leave to join manufacturers or go abroad. As trained people leave. we also assessed the skill availability across different service areas. as they feel the curriculum in these institutes are not aligned to the needs of the modern industry. through both formal training at training centers and on-the-job training.
. as it is here that problem understanding. many players still perceive gaps in skills. attrition levels are higher in Kerala. According to one of the respondents. technician level personnel are typically fresh graduates from ITI and Polytechnics. The middle (supervisor) level is considered critical in terms of skill requirements. Here again. The key reason for the perceived high gap in this area is the churn. Hence. While some do leave to join competition.
most personnel still prefer to go by traditional. Accident repair is another area where many respondents feel adequate attention is not being paid.13
We asked industry players to assess the availability of manpower across these four areas.
. Another issue that some respondents expressed is that this specialized skill is not imparted in any of the institutes. The responses are captured in the figure below: All respondents agreed that routine maintenance activities have not
Source: KPMG Research – Interviews with industry players. The key gaps are perceived in the diagnostics / troubleshooting area. and have to be provided through training by the OEM. Hence after training. Similarly. This puts a burden on training resources. There is hence an urgent need to modify the curriculum at the institutes to reflect industry requirements. Such specialized skills are not imparted in the institutes. Despite modern tools and techniques for body repairs being available. manual methods that have been used by earlier generations of mechanics. and as these jobs do not require specialized skills. people with customer management skills are available in other service sectors. interpret the results and take corrective action. problem analysis and diagnostics have become highly sophisticated and involve the ability to use special tools and instruments. OEMs and dealers are forced to depend entirely on in-house training in these areas. Getting acquainted with diagnostic instruments requires a higher level of education and intelligence as compared to routine maintenance. there is not skill gap here. such resources that are skilled in diagnostics become valuable and it is important to retain them. Such activities are also outsourced to local unorganized players in many cases. 2008
changed significantly over the years. With changes in vehicle technology. In the absence of adequate exposure to modern vehicle technology at the ITIs and polytechnics. and can be recruited and trained easily.
these facts have not been effectively percolated to potential employees. The high level of churn further adds to the problem.
4. Another issue is that dealers are sometimes reluctant to nominate or send their personnel for training. as the remuneration is much more attractive. but increasing capacity constraints
OEMs have their own service training centers where they impart training to personnel from authorized service outlets.3 Training – key focus area.14
4. training at the OEM’s training center is augmented by training at the dealer premises and on-the-job training at the service outlet. Another opinion holds that automotive servicing has a rather poor image when compared to other options. customer management and business management. employees in the relevant positions are also provided training in soft skills. These programs range from foundation courses to refresher courses and advanced courses.2. Such centers provide a series of training programs to cater to the needs of different levels of employees. in which the company’s service training personnel travel to different locations to impart training at the work spot. Apart from technical training. There is a perception that while servicing today is very different from what it used to be. Some of the respondents felt that they were unable to adhere to the training norms set for different employees. and many OEMs offer attractive opportunities for learning and growth (including training abroad) for talented employees. While they could be competitive within the industry in India. Some players like Ashok Leyland operate mobile training vans. many employees go abroad or join other sectors such as Insurance or BPOs. Given the continuous expansion of the service network and increase in manpower to be trained.3 Perceived gap in both remuneration and image
Some of the respondents felt that they were not able to attract the right talent as they are not able to match the remuneration offered by other sectors. as the number of people has grown much faster than the training infrastructure. many players feel that their in-house infrastructure for training may prove inadequate.
. as it may impact their operations. In most cases. It is also common for players to maintain detailed skill matrices that are used to identify skill gaps and plan out training requirements.
Most industry players feel the solution to meeting the increasing training needs for service is two-fold: 1 Ensure the right skill sets are in place while recruiting. so as to reduce the need for additional training 2 Retain trained employees. Technician iii. employees who leave remain within the automotive industry. Master Technician 3) Supervisor + ~ seven to eight years – Assistant Works Manager Further progress depends on attitude and achievements. Junior Technician ii.
4. but prefer to move from a dealer to a manufacturer or from one dealer to a competitor.4 Manpower attrition is a key cause for concern
The automotive service sector is rapidly growing and offers adequate opportunities for growth. The typical career path of a technician would see him become a Supervisor or Service Advisor in about 7-8 years. Most players take an active role in helping employees grow. despite these efforts.
Career path for a typical technician 1) Trainee (Fresh ITI) + training for six months to a year -> Technician 2) Technician + ~ six to seven years -> Supervisor / Service advisor a. However. In most cases. The key reasons for churn appear to be better remuneration and better career options with other companies. nurture and develop talent. or to a similar job abroad. some help ITI trained technicians to go in for diploma courses after three years. so as to reduce the need for repeated training. Most players have several programs to identify. For example. There are also several reward and recognition systems in place for exceptional performers. and a Works Manager in about 12-15 years (See box). attrition levels in the industry continue to be high. Skill levels are assessed against detailed skill matrices and required skills are imparted through a range of training programs.
. There are several levels of Technicians in-between: i. Expert Technician iv. and graduates go in for post graduate diploma courses.
5. AMP also envisages the setting up of Automotive Training Institutes for training mechanics12. As a result.. www. For example. the students coming out of these institutes do not have the specialized skills required to service modern vehicles. the latter is to be addressed by the players themselves. The above issues need to be addressed separately. as the need is felt across the industry. by developing / modifying the curriculum to reflect the industry needs. While the institute would prepare the courses and materials for training and development of manpower for the industry. creating a void that cannot be easily filled.1 Collaboration with institutes – the need of the hour
Most of the respondents to our survey pointed out that the curriculum in the relevant courses at ITIs and polytechnics do not reflect the changed requirements of the industry.in)
. with a focus on servicing such vehicles. vehicle models. with select institutes.
12 Automotive Mission Plan 2016 (Department of Heavy Industry. Some of the larger players are already working on such initiatives. special tools and equipment. The Automotive Mission Plan (AMP) of the Government of India envisages the setting up of a National Automotive Institute. the same would be implemented through the various ITIs.nic. to co-ordinate training in various disciplines related to the automotive sector. specific courses on new technologies such as automatic transmissions. Industry players can also contribute the necessary equipment such as aggregate models. could be designed jointly.16
5 Addressing the gaps – what can be done?
The two key issues that emerge from the above discussion on service manpower are: 1 New recruits do not have the right skill sets appropriate to industry needs 2 Trained employees leave their jobs.dhi. and students opting for these could be directly absorbed into industry. alternate fuels. this can also be looked at a wider industry level. While the former needs active collaboration of industry players with technical training institutes. etc. and know-how for the instructors to teach these courses. This issue needs to be addressed jointly by the industry and institutions. engine control systems.
as discussed above. By becoming skilled in multiple auto repair services. it is fair to assume that someone who undergoes the certification course might have not only the required skills. certification is common for non entry-level technicians in large. could help in identifying such students early. www. technicians must have at least two years of experience and pass the examination. and heating and air-conditioning. urban areas. engine repair. Experienced technicians who have administrative ability sometimes advance to shop supervisor or service manager. an attempt could be made to identify personnel who have an interest and affinity for automotive servicing. Completion of an automotive training program in high school. Technicians who work well with customers may become automotive repair service estimators. etc. greater interaction with students in the technical training institutes.bls. For certification in each area.
. which could not only help employers to assure themselves of the skill levels of employees they hire. or community or junior college may be substituted for a year of experience. Hence. urban areas. Matching the salary levels of other sectors is not likely to be a viable option.17
Such institutes could develop and run certification courses for mechanics. brake systems.. but also an interest in the chosen area. to identify potential candidates. acquiring the National Institute for Automotive Service Excellence (ASE) certification is important for those seeking work in large. these issues need to be addressed for retaining talent. technicians must be certified in all eight areas. At the recruitment stage itself. such as electrical systems. and putting fast track growth options for exceptional performers in place. however. but also provide value to potential employees and help them get employed faster (see box for example from the US – National Institute of Automotive Service Excellence) National Institute of Automotive Service Excellence (US) In the US. Certification is available in one or more of eight different areas of automotive service.
Source: US Department of Labour. much before actual recruitment starts. Those with sufficient funds often open independent automotive repair shops. For ASE certification as a Master Automobile Technician. This could be followed by initiatives such as offering industrial training at dealer workshops. conducting tests / competitions at the institutes. The presence of a certification program. suspension and steering. industry players can take steps in providing good working conditions. While not mandatory for work in automotive service. technicians can increase their value to their employer and their pay. vocational or trade school. would help in this regard. ASE certification has become a standard credential for automotive service technicians. learning and growth opportunities within the company.2 Employee retention requires a combination of factors
The two key reasons give by industry players for attrition of their service personnel are better remuneration and better career prospects offered by alternate career options.gov
5. In the absence of such a course.
to meet the servicing requirements of vehicles with modern technology 3. scholarships. To meet this requirement. a strong service sector is needed to support and sustain growth in the automotive industry. Focus on employee retention through employee friendly processes and policies and a conducive work environment. Some of the key initiatives that could be implemented include: 1.18
There is no doubt that automotive servicing in India is poised for growth. Industry players and institutes to jointly refine the curriculum of relevant courses. in terms of equipment and know-how. Expedite the implementation of ATIs.5 million over the next 10 years. as well as training for the instructors 4. as vehicle volumes increase and technology continues to evolve. players need to take steps to improve their employee retention. Therefore. Develop certification courses based on industry requirements 2. manpower plays a critical part in the success of automotive servicing. etc. through focused recruitment and improved career planning and management. Hence. the sector faces key gaps in terms of numbers and skilled manpower. to them 5. The thrust on servicing is expected to continue in the long term. Industry players could also look at conducting tests. Currently. It is estimated that the automotive service sector would require manpower of about 0. Industry players to provide assistance to the institutes they work with. industry players may need to closely collaborate with technical training institutes to ensure a steady supply of trained employees. getting the right manpower in place is one of the key cornerstones for success. At the same time. and providing industrial training. As in any service sector. Even if new vehicle sales do not grow as expected.
. the requirements for servicing the existing vehicle population is not expected to diminish. contests or other filters to select promising students as potential employees. as envisaged in the AMP .
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The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India. skill development and water.000 companies from around 380 national and regional sectoral associations. not-for-profit. playing a proactive role in India's development process. industry led and industry managed organisation. socially and ethically vibrant global leader by year 2022. Singapore. enhancing efficiency. CII catalyses change by working closely with government on policy issues. reflects its aspirational role to facilitate the acceleration in India's transformation into an economically vital. Complementing this vision. 8 overseas in Australia. assisting industry to identify and execute corporate citizenship programmes. technologically innovative. Founded over 113 years ago. with a direct membership of over 7500 organisations from the private as well as public sectors. to name a few. CII is a non-government. USA and institutional partnerships with 271 counterpart organisations in 100 countries.
org Western Region 105. Godrej Bhawan.net s.org Mumbai C/o Godrej & Boyce Mfg Co Ltd.org
CII-Institute of Logistics (Old No.org Regional Offices Eastern Region 6.3. Kothaguda Post Near Hi-tec City Ranga Reddy District Hyderabad 500 032 Tel: 040-23112971-73 Fax: 040-23112837 Email: gbc@ciionline. Dakshin Marg Sector 31-A Chandigarh 160 030 Tel: 0172-2602365 /2605868 / 2607228 Fax: 0172-2606259 Email: ciinr@ciionline. 4th Floor.org CORPORATE OFFICES New Delhi India Habitat Centre Core 4A. Tel: 044-22551343-45 / 22551342 Fax: 044-22551341 Email: cil@ciionline. Netaji Subhas Road Kolkata 700 001 Tel: 033-22307727 / 28 / 1434 / 22303354 Fax: 033-22301721 / 22312700 Email: ciier@ciionline. Kakad Chambers.64.560 091 Tel: 080-23289391/6085 Fax: 080-23289388/ 23580314 Email: firstname.lastname@example.org Velacherry Main Road Nagendra Nagar Near Guru Nanak College Chennai 600 042. Dakshin Marg Sector 31-A Chandigarh 160 030 Tel: 0172-2602365 / 2605868/2607228 Fax: 0172-2606259 Email: ciicfc@ciionline. Mumbai-400 001 Tel: 022-22076087 Fax: 022-22076086/24939463 Email: arun.puranik@ciionline. Phase-IV. Home Street. Mumbai 400 018 Tel: 022-24931790 / 24964792 Fax: 022-24939463 / 24945831 Email: ciiwr@ciionline.HEAD QUARTERS The Mantosh Sondhi Centre 23. Netaji Subhas Road Kolkata 700 001 Tel: 033-22315571 / 5574 Fax: 033-22315577 Email: ciicocal@ciionline. Janpath New Delhi 110 001 Tel: 011-41502301-02 Fax: 011-41501924/25 Email: email@example.com
CENTRES OF EXCELLENCE CII-Institute of Quality (CII-IQ) Near Bharat Nagara 2nd Stage. Velacherry Main Road Guindy Chennai 600 032 Tel: 044-42444555 Fax: 044-42444510 Email: cii. Dr Annie Besant Road Worli.org CII-Naoroji Godrej Centre of Excellence Godrej Station-side Colony Opp Railway Station. Thapar House 124. 5th Floor 4-A. Haryana Tel: 0124-4014051 / 4309447 / 401460-67 Fax: 0124-4014051 CII-ITC Centre of Excellence for Sustainable Development IInd Floor.d.org CII-L M Thapar Centre for Competitiveness Block No.org OTHER CORPORATE OFFICES Kolkata 6.org Northern Region Block No.firstname.lastname@example.org) New No. Fort. 1st Floor 132. 3.org CII-Institute of Quality (CII-IQ) 249-F Udyog Vihar .org CII-Sohrabji Godrej Green Business Centre Survey No. Magadi Main Road. Vishwaneedam Post Bangalore .south@ciionline. Phase IV. .org Gurgaon 249-F Udyog Vihar.org
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. Dakshin Marg Sector 31-A Chandigarh 160 030 Tel: 0172-2602365 / 2605868 / 2607228 Fax: 0172-2606259 Email: email@example.com. Vibhuti Khand Gomti Nagar Lucknow 226 010 Tel: 0522-2721950-52 Fax: 0522-2721953 Email: cii.singh@ciionline. Forest Park 1st Floor Bhubaneswar 751 009 Tel: 0674-2533514 / 3299907 Fax: 0674-2531013 Email: firstname.lastname@example.org Uttrakhand Nepal House.796 001 Tel: 0389-2301087 Fax: 0389-2315168 Email: rebecca.Sector 18 Gurgaon-122 015 (Haryana) Tel: 0124-4014071/ 401460-67 Fax: 0124-4014070 Email: cii. First Floor 30/1 Rajpur Road Dehradun 248 001 Tel: 0135-2745120 Fax: 0135-2745121 Email: cii.org Mizoram 1st Basement MUP Building.org Chhattisgarh P25.org Bhubaneswar Plot No. Road. Regal House Plot No 7 Moti Lal Nehru Nagar Begumpet.org Delhi (NCR) 249-F Udyog Vihar .org Northern Region Chandigarh (UT) Block No.org Rajasthan D-24.org Uttar Pradesh Plot A.O. South Block (3rd Floor) Bahu Plaza Complex Jammu 180010 Telefax: 0191-2477374 Email: shivneet. Netaji Subhas Road Kolkata 700 001 Tel: 033-22307727 / 28 / 1434/22303354 Fax: 033-22301721 / 22312700 Email: ciier@ciionline. Sector-1 Extension Near CSEB Sub Station Abanti Vihar Raipur . Dakshin Marg Sector 31-A Chandigarh 160 030 Tel: 0172-2602365 / 2605868 / 2607228 Fax: 0172-2606259 Email: ciinr@ciionline. Phase IV.email@example.com@ciionline. 3.K.rajasthan@ciionline. Raj Bhawan. Dakshin Marg Sector 31-A Chandigarh 160 030 Tel: 0172-2602365 / 2605868 / 2607228 Fax: 0172-2606259 Email: ciinr@ciionline. 3. Phase IV.hyderabad@ciionline. M G Road.org Jharkhand Room No. 3.org Punjab Block No.G.STATE OFFICES Eastern Region Assam “Ratnapeeth” 59.492 001 Tel: 0771-4013520 / 6532992 Telefax: 0771-4093299 Email: prateek. Hyderabad 500016 Tel: 040-27765964 / 66 / 67 / 27765934 Fax: 040-27766116 Email: cii. C-Scheme Jaipur 302 001 Tel: 0141-2370349/ 2365844 / 5118440 Fax: 0141-5118389 Email: cii. Sector 18 Gurgaon-122 015 (Haryana) Tel: 0124-4014072 / 73 / 4014060-67 Fax: 0124-4014070 Email: cii.org Tripura Industries Building (1st floor) Pandit Nehru Complex P Kunjaban .das@ciionline.
Maharashtra 105.org Kerala Opp.tamilnadu@ciionline. First Floor Rue Desbassyns de Richemont Puducherry 605 001 Tel: 0413-2226201 Email: cii. Mumbai 400 018 Tel: 022-24931790 / 24964792 Fax: 022-24945831 / 24939463 Email: ciiwr@ciionline. firstname.lastname@example.org@ciionline.org Siliguri (West Bengal) C/o Ravi Auto House 2nd Mile Sevoke Road Siliguri 734 012 Telefax: 0353-2544766 Email: laxmi. A-305 & 306 Raheja Centre 3rd Floor. Velacherry Main Road Guindy Chennai 600 032 Tel: 044-42444555 / 42444516 Fax: 044-42444510 Email: chairman.k. Township Dist. 518.530 002 Telefax: 0891 . Bangalore 560008 Tel: 080-25276544 / 545 / 706 / 707 Fax: 080-25276709 Email: ciiblore@ciionline. Rednam Gardens Opp.email@example.com Southern Region Coimbatore (Tamil Nadu) Door No.3A.32.org Madhya Pradesh E-2/109.O. 4th Floor Rednam Alcazar 10-12-1.org
.4 Fax: 0120-4345970 Email: cii. Chennai 600 032 Tel: 044-42444555 / 42444516 Fax: 044-42444510 Email: cii. SBI Main Branch Visakapatnam .org Western Region Goa 502 Unitech City Center Opp.No. Hatiberia.org ZONAL OFFICES Eastern Region Haldia (West Bengal) HPL Guest House Swati Housing Complex Ph-1. Kakad Chambers 1st Floor 132 Dr Annie Besant Road Worli.kerala@ciionline. Avanashi Road Coimbatore 641018 Tel: 0422-2248410 / 2249488 / 2247456 Fax: 0422-2244709 Email: ciicbe@airtelmail.Karnataka No.2555535 Email: cii. Pal Plaza District Shopping Centre Ranjit Avenue Amritsar 143 001 Tel: 0183-5061607 Email: cii. Velacherry Main Road Guindy.firstname.lastname@example.org@ciionline.in.net. Focal Point Ludhiana .email@example.com
Noida (Uttar Pradesh) CMA Tower A-2-E.firstname.lastname@example.org@ciionline. Sears Towers Gulbai Tekra Near Panchvati Ellisbridge Ahmedabad 380006 Tel: 079-26469843 / 26469346 Fax: 079-26462878 Email: ciiguj@ciionline. Arera Colony Bhopal 462 016 Tel: 0755-4293792 / 2425752-53 Fax: 0755-4271824 Email: email@example.com Puducherry 56. Panaji Goa 403 001 Telefax: 0832-2422790-6 Email: ciigoa@satyam. Purba Mednapore Haldia 721607 Tel: 03224-266121/262805 Fax: 03224-262805 Email: ramit.in Visakapatnam (Andhra Pradesh) Flat No.in Chennai (Tamil Nadu) 98/1. 4C Ashok Nagar Ranchi 834 012 Tel: 0651-2240040 Email: s.noida@ciionline. 1st Floor 4th Main Road.in Trichy (Tamil Nadu) 3rd Floor.org Tamil Nadu 98/1. Road No.in Gujarat 203-204. Sector 24 Noida 201301 Tel: 0120-4345972 .org Northern Region Amritsar (Punjab) SCO . 12 Main HAL 2nd Stage Indiranagar.firstname.lastname@example.org Madurai (Tamil Nadu) Plot No. Cochin Passport Office Panampilly Nagar Kochi 682 036 Tel: 0484-4012300 Fax: 0484-4012800 Email: cii.141 010 Tel: 0161-2676241 / 2670233-37 Fax: 0161-2672790 / 2674238 Email: cii. GVR Complex 6A Lawsons Road Contonment Trichy 620 001 Tel: 0431-2410641 4000641 Fax: 0431-2410655 Email: ciitry@airtelmail. K K Nagar Madurai 625020 Tel: 0452-4391434 / 4210979 / 2522743 Fax: 0452-2521705 Email: email@example.com Ludhiana (Punjab) C/o Majestic Auto Ltd C-48.1086. P .org Ranchi (Jharkhand) 391B. Hotel Shivsagar M G Road.
firstname.lastname@example.org Fax: 0086 .703 807 0315 Email: kiran. sreekumar.uprety@ciionline. 54. A B Road Indore 452010 Tel: 0731-5041694 / 5040390 / 5090478 Fax: 0731-2432913 Email: ciimalwa@ciionline. .32283510 Email: e. State Bank Road Erode .223777 Email: sawan.628 008 Tel: 0461-2312177 Email: ciithoothukudi@ciionline. A-78 MIDC. ACT 2600.net.283555 Email: email@example.com / 4807767 Fax: 0043 .firstname.lastname@example.org@cii-usa.org.fr Japan (CII Representative Office) C/o Taj Hotels Resorts & Palaces 9th Floor.in OVERSEAS OFFICES Australia (CII Representative Office) P Box No. neerja.jp Singapore Southeast Asian Region Office 47 Hill Street #07-02 SCCCI Building Singapore 179365 Tel: 0065 .480 001 Tel: 07162 .in Western Region Chhindwara (Madhya Pradesh) 58. Onarimon Yusen Bldg 3-23-5 Nishi Shinbashi Minato-ku Tokyo 105-0003 Japan Tel: 00-81-3-3432-4530 Email: t. Madhuban Colony Chhindrawa .org UK C/o Confederation of British Industry (CBI) Centre Point 103 New Oxford Street London WC 1A 1DU Tel: 0044 .org Karur (Tamil Nadu) 9-D/1.703 807 0310 Fax: 001 .com
Vadodara (Gujarat) email@example.com Fax: 0061 . Rohrergasse 5 A .4807767 Email: Hamdy_gcc@telering.20 .230012 Email: firstname.lastname@example.org Indore (Madhya Pradesh) 402. Industrial Area Malanpur 477116 Tel: 07539 .1 . 16.639 001 Telefax: 04324 .org Gwalior (Madhya Pradesh) C/o SRF Ltd.org France (CII Representative Office) 6 Passage des Arts.at China (CII East Asia Representative Office) Room No 11-A 47/49 Shanghai Mart 2299 Yanan Road (West) Shanghai 200336
People's Republic of China Tel: 0086 .5532016-17 Fax: 0265 .1 .1 .dion.bhatia@ciionline. Pune 411005 Tel: 020-25536159 / 6590 / 4296 Fax: 020-2350756 Email: ciipune@vsnl. 8076) Fax: 0044 .4272460 Email: email@example.com Thoothukudi (Tamil Nadu) 106 J/30. Australia Tel: 0061 .Mysore (Karnataka) 8/1A.638 001 Tel: 0424 . Sapphire Twins Scheme No.org Nashik (Maharashtra) C/o VIP Industries Ltd. Virginia 22209 Tel: 001 .2327108 Email: firstname.lastname@example.org Pune (Maharashtra) Bungalow No. 75014 Paris Telefax: 0033 .com Austria (CII Representative Office) 16.1160 Vienna. Satpur Nashik 422 007 Tel: 0253-2350862 Fax: 0253-2350756 Email: email@example.com . Millerpuram Thoothukudi . 2 Ganeshkhind Road Near Rahul Cinema Shivajinagar.6 .3334363 Fax: 0065 . PKG Building 50 Feet Road.tokuhara@k9. Yarralumla.21 . Austria Tel: 0043 .org Southern Region Erode (Tamil Nadu) 79.20 .O.b.222777 Fax: 07162 .2 .40475481 Email: rmulye.78364121 / 73797400 (Extn. Temple Road Jayalakshmipuram Mysore 570012 Tel: 0821-2516319 / 2517003 Fax: 0821-2515513 Email: firstname.lastname@example.org Fax: 07539 . First Street.8830658 Email: email@example.com .6 .ne.org
. Ramakrishnapuram Karur .62324218 Email: firstname.lastname@example.org. Old Padra Road Vadodara 390 020 Tel: 0265 . Abhishek Complex Akshar Chowk.sg.72401578 / 73958178 USA 1700 North Moore Street Suite 1928 Arlington.
This report was prepared as a background note for Auto Serve 2008
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