Published on October 6th, 2019 | by Daniel Sherman Fernandez1
BAD After-Sales Is Killing New Car Sales
This is a new phenomenon that is spreading across many car brands as they turn their attention to showroom sales and keeping their principals happy with higher initial profits (why we say initial is because later down the road they will be paying out higher warranty claims).
In the past 20 years of doing this job we have seen some brands suffer in new car sales after spending little thought about customer care and after-sales and even until today they find it hard to climb back up on the sales charts, even after introducing global award winning new vehicles with great showroom pricing.
In recent years we have some previous rather docile brands seeing their sales jump faster than they can cope with and they have forgotten to look at after-sales and so, instead of taking 110% attention of after-sales and customer care, they have spent a lot of time and money pushing product launches and the promise of a great ownership experience with little thought keeping the customer as their best selling tool.
With new vehicles getting more complicated with enhanced cabin experiences, increased social media connectivity and 3rdeye safety systems, vehicles today require more attention in the workshop and there are just NOT enough experienced ‘hands’ to address technical and mechanical issues.
Further to this, car manufacturers are rushing over each other to quench the needs of new car buyers with state-of-the art systems and ‘gadgets’ that interact with drivers. Using third party technology partners, car manufacturers in Malaysia are left to the ‘mercy’ of flat panel touch screens, interactive software, ‘smart’ systems and more that promise a ‘heavenly’ vehicle ownership experience day in day out.
This is sadly dwindling as Malaysian (ASEAN also) humidity, heat and high traffic conditions do not favor a lot of new technologies sitting in vehicles where owners expect a trouble free experience over 5-6 years.
It is time for some car manufacturers in Malaysia to look deep into after-sales first and selling cars second as their current customers are losing patience and money with high repair costs, frequent breakdowns and un-kept warranty promises.