Southeast Asia, with a combined population of over 620 million and an economy of $2.6 trillion is recognised as a powerhouse in the global automotive industry. Sales of new vehicles in Southeast Asia’s six largest markets, are estimated at 3.3 million units in 2017, a 4.4% increase from the 2016 figure of 3.2 million (source). Car manufacturers remain bullish about the market for the coming years. In spite of the brief decline in 2014, the automotive industry in Southeast Asia shows little signs of slowing down, signalling a continued track of resilient growth.
Malaysia is no exception to the growing number of automobiles on the road. As of October 2017, the number of registered road vehicles in Malaysia hit over 13 million, almost half of the country’s population of 31.2 million (source). However, Malaysian car owners are facing an increasingly higher cost of motor vehicle insurance coverage. With affordability being a direct factor in determining the range of insurance coverage taken, more and more Malaysian car owners are opting out of comprehensive motor vehicle coverage, greatly opening the market for more affordable auto repair services.
Though auto repair services range widely, the most common auto repair service that isn’t covered under the standard insurance subscription is coverage for the windshield. As drivers on the Malaysian motorway, we have all experienced having small stones or gravels being flung off the roads and onto our windshield. It happens too often. Offhandedly, this minor incident could easily cause a chip or slight crack in our windshield. But who wants to pay large sums to replace an entire windshield for the most minor of damages? Well, a small windshield chip is harmless, right? Not entirely. Delaying to restore a damaged windshield can over time not only worsen it into large dangerous cracks, but even degrades a vehicle’s structural integrity. In situations of a crash or rollover accident, a sturdy windshield helps support the roof, maintain optimal position for airbags to deploy properly and even prevents you from being thrown out from the vehicle (source). All these functions are greatly compromised when your windshield isn’t maintained in perfect form.
Sadly however, though windshield replacement and repair in the US count for 30% of auto insurance claims (source), roughly 70% of all Malaysian cars owners still do not have coverage on their windscreens! With the increasing demand of automobiles, and many Malaysian drivers not subscribed to comprehensive motor vehicle coverage, there is an undeniable strong spillover demand for affordable auto repair services – and those specialised in auto glass repair are ever welcoming to the increased potential market.
One prominent player in the Malaysian auto glass repair market is Automoto Glass. Being in business since January 2018, Automoto Glass provides an affordable service in repairing unfortunate chips and slight cracks on the windshield of your beloved vehicle, all without actually replacing your whole windshield. And the best part? Their services are mobile.
Automoto Glass is set to tackle all the problems entailing windshield repair, from education, price, convenience and even environmental sustainability. The founder, Raymond Tan, who has been in the glass repair business for over 13 years, saw great inefficiency in the way simple chips and cracks were dealt with in auto repair shops, encouraging him to embark on establishing the very company. There is a major problem in the ignorance of car owners as many are still unaware that these minor faults need not windshield replacements, as they can be repaired. Thus, many of them are susceptible to mechanics who encourage their request for expensive windshield replacement services, instead of simply offering them the cheaper alternative. Under Tan’s business model, we see that not only are customers given the convenience of a call-in service, but the charge per service is set sensibly and affordably at RM150, a mere tenth of the average RM1,500 cost of a windshield replacement in Malaysia; with none of the trouble.
With over 13 million vehicles actively registered in Malaysia, the estimated number of repairable windscreen damages amounts to between RM3 to RM4 million every year. Charging at RM150 per repair, total annual market for Malaysian windscreen repair is between RM450 to RM600 million – the exact market Automoto Glass targets to lead. Furthermore, Automoto Glass is also largely motivated to expand to the Southeast Asian market. Given the increasing size and response of the ASEAN car market as a whole, the growing potential and demand in auto glass repair services also pave way for this admirable business to flourish throughout the region (source).
With Automoto Glass’ unique business model that fills the gap between affordable and convenient windshield repair, it is just a matter of time before their targeted clients from both the private and public sectors in ASEAN sign up for their handy services.
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