How carmakers use analytics to hike spare part prices

Accenture, a software vendor for multiple carmakers like Renault, Jaguar Land Rover (JLR) and Peugeot, has told prospective buyers how their application allows the manufacturers to raise spare part prices. The software allegedly tells the car maker the maximum price a customer will pay for a particular part. It will also warn against increasing prices of certain parts.

According to a media report, the software, known as Partneo, can disclose which part in the manufacturer's line-up could get a price bump, without affecting customer satisfaction. The facts were obtained from sales presentations prepared by Accenture during the period 2009-2015. Only JLR has admitted that it uses Partneo, while Accenture has denied the allegations and said that the software only focused on the client’s efficiency.

The presentations also say that the carmakers have increased their revenues by over US$ 1 billion over the past 10 years using complex softwares to jack up spare part prices. Renault, Jaguar Land Rover (JLR) and Peugeot said that their pricing systems are legal and are based on efficiency and availability and it did not take advantage of car owners.

Source - Reuters