Ayala-led automotive company AC Motors has partnered with German car parts provider Bosch Automotive Aftermarket for the establishment of 20 new outlets in 2024 and up to 60 over the next five years, as well as adding two Bosch car service franchises in the Philippines.
AC Motors Automobile Group President Antonio “Toti” Zara III expressed confidence that the partnership can leverage AC Motors' extensive experience in aftersales operations to offer exceptional customer service in the aftermarket segment.
“Together with Bosch, we aim to bring this experience to as many motorists as possible, as we aim to grow Bosch Car Service into the country’s largest automotive aftermarket service provider within the decade," Zara said during the signing event at AC Motors Centrale in Taguig on Wednesday, Oct. 18.
AC Motors said that the new outlets will be equipped to serve the large and growing car parts of internal combustion engine (ICE) vehicles.
In addition, AC Motors and Bosch also plan to gradually roll out EV repair and maintenance capabilities at select locations to support the shift towards electric mobility.
For his part, Bosch Automotive Aftermarket ASEAN Vice President Marcio Coelho said, “we are proud to embark on the journey alongside our strong partner the Ayala Group, to reshape the car service scene today in the Philippines by incorporating integrated vehicle technologies and expand our global network of independent workshops, today already at 12,000 BCS across 150 countries.”
Bosch Car Service will offer “one-stop-shop services” covering “bumper to bumper” from mechanical repairs to intricate electronics, engine systems, safety features, comfort upgrades, transmission expertise, and a host of other services and diagnostics.
“The Bosch car service franchise will be future-proof as the industry transforms to electrify mobility,” Zara said.
Further, he highlighted that the technical center of AC Motors in Carmona will be supporting the Bosch car service centers, utilizing the same integrated parts logistics system that already exists centered around Entrego, another Ayala Group of Companies member.
There will be two franchises that will be offered including the Type 1 and Type 2 workshops.
With an investment worth P9-10 million, the type 1 workshop will have a four to five base, focusing on quick repairs.
The Type 2 workshop will be seven to eight base, offering quick repairs and heavy repair facilities. This will be established with an investment of P11-12 million.
“The aftermarket business is very profitable if you have the technical expertise,” Zara expressed.
Zara said that the first target franchise location will be in Region 4, specifically in Bacoor, Cavite to be established by the first quarter of 2024.
For the last quarter of this year, Zara said that they will focus on the conversion of existing market facilities.
Zara also noted that the companies are expecting to pay back their investors in less than 3 years, offering this as a franchise to independent investors aside from AC Motors’ operating their own workshops.
AC Motors intends to expand in Luzon, Visayas, and Mindanao.
“Together with AC Motors, we stand as a formidable proponent not just in prolonging a vehicle’s life, but in taking action to promote road safety by making effective, smart, and convenient maintenance easily accessible to everyone,” Bosch Philippines Managing Director Paulo Duarte said.
Duarte added that accessibility to transportation services is crucial in the Philippines, where rapid economic growth has increased the pace of infrastructure and demands.