By Nathan Cooper
As electric vehicles (EVs) continue to gain popularity, the automotive industry is experiencing a significant shift in the aftersales market as we continue on the road to 2030.
Battery electric vehicles (BEVs) are fundamentally different from traditional combustion engine vehicles, with different components, systems and maintenance requirements. This shift in technology is leading to a shift in aftersales revenue streams for dealerships and service centres. Although this shift will be gradual, as there are still millions of petrol and diesel vehicles on the road today, the market share of BEVs is increasing, with 15.4% of all cars sold in 2023 so far being a BEV (source SMMT).
Impact on parts and services revenue
The shift towards BEVs is leading to a decline in traditional parts and services revenue streams, such as oil changes, spark plug replacements and exhaust system repairs. These types of services are not required in BEVs as they do not have combustion engines. Instead, BEVs require new types of services, such as battery maintenance, charging system diagnostics and electric motor repairs. As a result, dealerships and service centres will need to adapt their services offerings to meet the changing demands of the market.
Opportunities for the retailer
Battery maintenance and repair present a significant opportunity for aftersales revenue growth. BEV batteries are complex and expensive components, and they require specialised maintenance and repair services. This provides dealerships and service centres with an opportunity to develop expertise in this area and provide high-value services to BEV owners. As battery technology advances and the market for BEVs grows, the demand for battery maintenance and repair services is expected to increase significantly. Many customers will be looking for experts in this field, so this presents an opportunity for the franchise network to really maximise and promote themselves as the market leaders in this space.
In addition, things such as smart repairs and full valet services can also create additional revenue streams for retailers. Being able to adapt your operation to attract and generate additional revenue to fill the gap from traditional services will be key to future success.
Increased focus on preventative maintenance
BEVs require different types of preventative maintenance than traditional vehicles. For example, battery capacity can decrease over time, and regular maintenance is required to ensure that the battery is performing at its best. Additionally, proper tire inflation and regular brake system checks are crucial for optimal efficiency in BEVs. Dealerships and service centres can develop new preventative maintenance programmes tailored to the needs of BEVs, providing customers with a higher level of service and generating new revenue streams.
Linking these preventative offers to your retention offerings, such as service plans or extended warranties, will be a great way to keep your customers returning for additional work. Once in the workshop, being able to configure your eVHC platform to meet these new sets of checks will also be a must to capture all the work required and not miss any opportunity.
In conclusion, the shift towards BEVs will have a significant impact on aftersales revenues in the automotive industry. Dealerships and service centres must adapt to the changing demands of the market, develop new services offerings and invest in training and education to remain competitive. By doing so, they can capitalise on the opportunities presented by this emerging market and drive growth in aftersales revenues.
Contact us at REALtime Communications to find out how we can support your aftersales operation now and in the future.
