Industry Advancement
What has changed
Paint Technology Advancement
No infrastructure, traditional tools and equipment
Basic infrastructure, with traditional tools and equipment
Improved infrastructure with manual tools and equipment
Infrastructure with Basic tools and equipment
Advanced infrastructure with advanced tools and equipment
NC base 1K Technology P U base Acrylic Basecoat with 2K Solvent base technology
Advanced Technology Waterborne Basecoat
The Indian automobile repair industry development history goes back just 20 years.We have witnessed a lot of change and also seen the market maturing faster then rest of the world.
Key Performance Indicator/Time line
Avg. bodyshop load
Avg. bodyshop bays
Job mix
Heavy repair (> 6 panels)
Medium repair (4 – 5 panels)
Small repair (< 3 panels)
Avg. custody time
Avg. manpower cost (% to BP labor rate)
Repair industry – KPI changes
Pre Year 2000
60 – 80 cars/month
4 – 5 bays
50 %
30 %
20 %
> 15 days
< 18 %
Yr 2000 - 2005
100 – 120 cars/month
8- 10 bays
40 %
30 %
30 %
10 – 12 days
18 % - 19 %
Yr 2005 - 2010
150 – 180 cars/month
10 – 12 bays
30 %
30 %
40 %
7 – 8 days
18 % - 19 %
Yr 2010 till now
> 200 cars/month
> 15 bays
20 %
30 %
50 %
3 – 4 days
19 % - 20 %
* Industry Avg. based on the various bodyshop sizing time to time
The past 20 years has brought significant changes and the KPI parameter has been drastically changed, leading to a change in the adaptation requirements
Technology elevations/Time line
Sanding systems
Denting/panel beating
Cutting and welding
Sanding process
Paint systems
Repair industry – technology and process
Pre Year 2000
100% wet
Manual denting
Gas welding
Hand sanding
1K NC acrylics paints with NC undercoats
Yr 2000 - 2005
70% wet & 30% dry
Manual denting
Gas/spot welding
Sanding with blocks
PU topcoats with NC undercoats
Yr 2005 - 2010
30% wet & 70% dry
With hand tools
Spot/MIG welding
Sanding with blocksand hand tools
2K paint system with solvent basecoat
Yr 2010 till now
100% dry
With dentpuller
Spot/MIG welding with pneumatic cutter
Pneumatic sanding tools
2K paint systems with solvent/WB basecoat
*Various bodyshop evaluations time to time
There has been a significant acceptance of various technological advancements and the Indian market was able to lead positive change management
OEMs’ BP program offerings – defined program
Yr 2005 till now
BP equipment standardization and mandate
Layout and design mandate
Vendor selection and alignment
BP operation manual
Own BP team and training centerestablishment
Comprehensive BP program offering with well-defined process, systems, insurance
and vendor offerings
* Various OEM offering evaluations time to time
Pre 2000….
Basic BP program guidance with very little control/focus in bodyshop
operations.
OEM offering
1. Tools and equipment
2. BP facility
3. Approval and quality of equipment
4. Standard BP guidelines
5. Knowhow and training commitment
6. Process control
OEMs’ focus in the past few years have been phenomenal with dedicated BP program offerings. Dedicated BP teams have been formed with focus on standardization
Job mix vs labour mix movement
* Avg. mix and labor mix for various Bodyshop evaluations
The change in the job mix has impacted the individual bodyshop approach towards the floor coordination and job allocation so as to remain productive and improve profitability
• Though the mix is changing however it’s more of repair v/s replacement now..
• Good for Repairer and good for Insurer.
Job mix impact on profitabilityAverage bodyshopload
Job mix @avg. labourmix
Heavy Repair (> 6 panels)
Medium Repair (4 – 5 panels)
Small Repair (<3 panels)
Total labour (INR)
Avg. labor/car (INR)
Pre Year 2000
80 cars/month
Mix % Cars Labour rate Labour
50 % 40 8K 320K
30 % 24 6.5K 156K
20 % 16 4K 64K
5,40,000
6,750
Yr 2000 – 2005
120 cars/month
Mix % Cars Labour
rate Labour
40 % 48 10K 480K
30 % 36 8K 256K
30 % 36 4K 144K
8,80,000
7,333
Yr 2005 - 2010
150 cars/month
Mix % Cars Labourrate Labour
30 % 45 12K 540K
30 % 45 8K 360K
40 % 60 5K 300K
12,00,000
8,000
Yr 2010 till now
200 cars/month
Mix % Cars Labourrate Labour
20 % 40 12K 480K
30 % 60 10K 600K
50 % 100 6K 600K
16,80,000
8,400
30 %
25 %
22 %
8.4K/car
8K/car
6.7K/car
3-4
Days
5 -7
Day
s
10 –
12 d
ays
2.3 Panel/car
3.0 panel/car
3.5 panel/car
What is changing
* Industry dynamics based on the various Bodyshop situation
YR 2010 YR 2016YR 2016 YR 2010
High
Medium
High
Medium
Low
Job size
Accident ratio
Labour/car
Custody time
The world around us is continuously changing…
Technical advancement of the bodyshop
*Industry dynamics based on the various bodyshop situation
Early year 2000 scenario
Crash repair guideline
Well defined layout HSE Focus
Quality & warranty
Sanding process
Painting processPainting process
Sanding process
By virtue of all the stakeholder participation, the system and process improvement have been drastically achieved in the bodyshop and there has been a remarkable upgrade since then
Key concerns of the bodyshop
*Industry dynamics based on the various Bodyshop situation
Key concerns
Technological advancement
Skill standardization
Preventive maintenance
Job variability
Cost mindset
Belding, merging & fadeout
Upskilling and fresh skilling
Manpower attrition
Skill standardization
Manpower attrition
Upskilling and fresh skilling
Preventive maintenance Technological
Belding, merging &
Machine
ManMethod
When the industry is maturing, they are facing difficulty on man management, standardisationand operational challenges due to fixed mindsets
Key performance differentiators
* AkzoNobel Vehicle Refinish - PCE services for best of bodyshop performances
Paint materials
Layout and design
Estimation
Training and certifications
Accurate and time bound
Quality output
Advance and efficient
Based on the current jobmix
When the market becomes more challenging and competitive the overall efficiencies and effectiveness will be of important use
What can we do to ensure performance
* AkzoNobel Vehicle Refinish - PCE services for best of Bodyshop performances* AkzoNobel Vehicle Refinish PCE services for best of Bodyshop performances
Customer centricity
OEMs
Insurance companies
Bodyshoprepairers
Paint and allied
partners
We all have to ensure we act so as to lead the industry in a sustainable way, to have a win-win solution for all the stakeholders and to achieve long lasting credible relationships
Thank youVivek Sahai National segment manager, vehicle refinish, [email protected]