[mohit]

One word, spare parts.

Seriously! You should see the enthu these guys have once you tell them that you need all filters, plugs etc changed for say 1 40k Kms service!

But the only reason people still go to dealers/authorized service stations is that that spares are atleast genuine. You can't say the same for regular market products.

[kvish]

For most consumer durables, apart from the usual dealer margin, there is a BONUS component. Basically, you sell 100 CTV, they will get some free... and this is where they make all the money. (Remember last week of december? one can even see these dealers selling products at loss, cos once they meet targets for that year, the returns are aplenty!) I believe the same works even in case of Automobile industry too.

Otherwise, considering the overhead costs they have, it may not be a feasible business.