August 21st,  2021 Blog Aftersales Performance

3 Key Considerations for OEMs and Dealers for Electric Vehicle Aftersales

 

With the projected growth of Electric Vehicles on the horizon, early adopters get the worm – and the sooner OEMs and Dealers prepare, the more competitively they will be positioned. While the impact that EVs have on aftersales revenues may not hit tomorrow, it will ultimately be significant. Urban Science believes the following key factors will help OEMs and Dealers better prepare for success throughout this transition.


 

OEMs:

  1. Get ready for more Over-The-Air services

The combination of connected services, higher technology content, and a lower number of parts will inevitably result in more services conducted Over-The-Air. Developing centralized customer support centers staffed 24/7 by a new breed of “technicians” is needed to deliver optimum service.

  1. Define collaborations with Dealers to support this new model

OEMs will need to leverage their dealer network to provide best-in-class OTA services, with clear responsibilities, escalation procedures, and revenue sharing agreements.  For both OEMs and Dealers, opportunities arise for the sale of OTA services to offset lower revenue from fewer vehicles in service lanes.

  1. Develop a clear battery life cycle strategy

The management of battery packs’ life cycle from production to disposal will be of primary concern to the government and the public. A well-defined strategy of each step in this cycle results in not only lowering the cost but also creates opportunities for new revenue streams. This also allows OEMs to differentiate themselves in the eyes of an ever more environmentally conscious customer base

Stand out in the eyes of an ever more environmentally conscious customer base through a well-defined, end-to-end battery life management strategy – lowering costs and creating new revenue opportunities.


 

Dealers:

  1. Grow your competitive advantage through your techs and facility

Servicing EVs requires a complete new set of skills and training for technicians, special isolated tools, diagnostic equipment and upgraded, safer service bays. Investing now will pay off in higher retention and less defection later as more customers convert to EVs.

  1. Get back in the Bodyshop business

Only 37.3%* of dealers have on-site body shop operations, often preferring to outsource collision repair work. With maintenance work reducing and less need of mechanical repair, dealers would be wise to reconsider this strategy.

  1. Up your stakes on tires

Too many dealers are not fully invested in the tire market, leaving it to specialized tire chain stores. While this is a more competitive segment and does not offer the margins of mechanical repair work, there is always the potential for profit if a dealership focuses their efforts.


 

To learn more about optimizing your Aftersales Solutions, call or email me.

Piermichele Robazza
Solution Lead – Aftersales Solutions, Urban Science
pmrobazza@urbanscience.com

*Source: NADA DATA 2020 ANNUAL FINANCIAL PROFILE OF AMERICA’S FRANCHISED NEW-CAR DEALERSHIPS https://www.nada.org/WorkArea/DownloadAsset.aspx?id=21474861098

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Introducing the Urban Science Dealership Transformation Index

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