B2B Services – Extended Warranty for the Automotive Sector

Leveraging on Warranty to Build Brand Loyalty

Automobile Dealers globally have long understood that one of the greatest opportunity within the industry is in leveraging their service centres to drive an ongoing conversation with the client. This enhances brand loyalty in a unique and sustainable way, providing a brand longevity not afforded by the traditional business model. This opportunity has become even more critical for highly saturated markets where competition has led to a decline in margins at the showrooms.
The extended warranty program – which strives to extend the existing manufacturers warranty is arguably the most effective way to retain customer loyalty by factoring service and maintenance into the lifecycle of the vehicle. Additionally, by costing or bundling the warranty into the vehicle sale price – extending the relationship cycle beyond its natural life cycle becomes cost effective as a tool to build and sustain consumer loyalty.
With the automotive and indeed insurance market in Laos fast evolving, provision of such warranty services are timely.

Turning traditional cost centres into sustainable profit centres

Opal Automart – Malaysia’s largest automotive warranty extension provider and loyalty club is now proceeding with establishing their operations in Vientiane. The company is promoting their services with a view to capitalise on the strong growth of the automotive industry in the region. Opal is translating their entire necessary backend infrastructure and expertise to Laos in order to deploy first – extended manufacturer warranties for select market leading brands. Opal Automart Laos will thus have the necessary economies of scale to provide the service cost effectively to it’s partners.
Market research is ongoing to establish the optimum premium for the service, and a benchmark of of USD300-USD500 has been set depending on make, model and volumes committed. This rate is in contrast to the industry rate offered in Malaysia around USD250 – USD 400 per vehicle. The premium extends new car warranty for an additional 2 years beyond the customary 3 years offered by most manufacturers.


Opal Automart Laos is seeking feedback and expressions of interest to deploy the service. For further information please fill in the following contact form to get in touch with Opal Automart Laos!



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