America’s roads are busier than they have been in years. Traffic volumes finally returned to pre-pandemic levels in the first quarter of 2025. Meanwhile, drivers are hanging onto their vehicles longer than ever, with the average car now 12.6 years old. This combination translates to more wear, more miles and greater demand for service.
These aren’t the only factors impacting the aftersales market. Evolving consumer expectations, technological advancements, the growing presence of battery electric vehicles (BEVs) and an increased emphasis on retention and convenience are all influencing how original equipment manufacturers (OEMs), dealerships and service providers approach aftersales.
Based on patterns we’re seeing across the automotive ecosystem, here are four key trends defining the landscape this year.
1. BEVs and Hybrids Are Transforming the Aftersales Game
The global push toward electrification has prompted a reevaluation of traditional aftersales models. While battery electric vehicles (BEVs) have fewer serviceable parts than internal combustion engine (ICE) vehicles, they also come with high-voltage systems, complex diagnostics and a more frequent need for new tires.
What sometimes gets overlooked in this equation is hybrid vehicles. Hybrids still have an ICE, which means they require both electrical and traditional servicing. That combination doesn’t just increase maintenance needs — it also presents additional service revenue potential. That’s reflected in Urban Science’s data, which shows that hybrid vehicle owners come in for service more often than BEV or ICE owners and are less likely to defect to independent shops.
Our research also points to a growing gap between dealer optimism and consumer skepticism about BEVs — a dynamic that favors hybrids. Despite recent policy shifts, 78% of U.S. dealers* say they’re placing greater emphasis on electric vehicle (EV) selling strategies, and 39% plan to ramp up these efforts significantly over the next five years. However, 39% of buyers believe OEMs should prioritize hybrids until challenges with BEVs are fully resolved.
The takeaway? BEVs are reshaping the service model, but hybrids may be the short-term win dealers are looking for.
Dealers and OEMs will need to adapt accordingly, scaling their sales and service networks to support a mix of ICE, BEV and hybrid vehicles. That calls for a science-backed approach, built on daily sales intelligence, data-driven network planning and the right infrastructure and staffing to deliver efficient, profitable service for a diverse range of powertrains.
2. AI Is Powering Scalable Dealer Intelligence
Predictive maintenance continues to be one of the most talked-about applications of artificial intelligence (AI) in aftersales, and dealer enthusiasm reflects this. Eighty-seven percent of U.S. dealers say they’re optimistic about AI in post-sales services and maintenance management, with many already exploring new ways to apply it.
Beyond maintenance, AI is helping bring service and sales into closer alignment. By tapping into customer and vehicle data, dealers can anticipate future purchase patterns. That insight makes it possible to stock the right inventory in advance and tailor offers to individual customers, turning routine service visits into timely sales opportunities.
One of the less visible — but equally impactful — uses of AI in the automotive space is in business intelligence, where it’s helping organizations make faster, more data-driven decisions. That’s why we’re introducing a new ServiceView module later this year, designed to deliver AI-driven insights that help OEMs and dealers create clear, localized action plans for growth. The result? Intelligent forecasting that not only shows dealers where they stand, but also guides them toward specific actions to boost service retention and revenue.
3. Alternative Service Models Are on the Rise
Convenience is king — and it’s driving change in how vehicle service is delivered. Customers now expect at-home maintenance services, remote diagnostics and over-the-air (OTA) updates that minimize the need for dealership visits. Technology is only accelerating that shift. Almost 90% of dealers say AI is reducing the need for manual diagnostics, while 86% point to OTA updates as a catalyst for fewer in-person visits.
That’s creating a challenge for OEMs and dealers. According to Urban Science’s data, demand for aftersales convenience is now twice as high as for vehicle sales. And nearly 40% of auto buyers say they prefer servicing their vehicle at a general repair shop because they see it as more convenient.
For franchised dealers, that means rethinking how — and where — they serve customers. Factors like dealership location, road network and density play a major role in how convenient a service experience is perceived to be, and whether a customer stays loyal. Nationally, most units in operation (UIO) are serviced within 10 miles of the dealership, and in metro areas, half are within just four miles. To stay competitive, dealers need to lean into proximity within their targeting to ensure they’re meeting customer demands and find new ways to capture service opportunities ahead of independent competitors.
In the U.S., strict franchise laws can make it tough to open new service locations. To extend their reach without building new infrastructure, automakers are turning to alternative models such as mobile service, pickup and delivery and kiosks to bring service closer to where their customers actually are.
4. Bundled Aftersales Packages Are Boosting Loyalty
Consumers increasingly want vehicle ownership to feel both predictable and flexible, and bundled service packages are helping to make that possible. By covering essentials like routine maintenance, software updates and extended warranties, these packages offer a simple, stress-free way to stay on top of service.
For OEMs and dealers, the benefits go beyond convenience. Bundled offerings drive retention and recurring revenue. Forty-three percent of car owners say they continue servicing their vehicle at the dealership they purchased from because the manufacturer offers a free or discounted service package. In addition, nearly half of auto-buyers say they strongly prefer their selling dealer to care for their vehicle, reinforcing the opportunity to turn the point of sale into the start of a longer-term relationship.
To support retention efforts, OEMs should tap into analytics that track service trends by geography, fuel type, vehicle age and more, offering insights into visit frequency and repair order (RO) volumes. These platforms offer benchmarking capabilities and exportable reports, helping brands identify performance gaps and opportunities at both national and local levels.
The Untapped Power of Aftersales
Aftersales isn’t just where service happens — it’s where loyalty is built. While sales might begin a relationship, it’s service that earns the return. In many cases, it’s the service department — not the showroom — that sells the second, third and fourth car.
In an industry that is changing faster than ever, the dealerships and service providers who measure KPIs against the most accurate benchmarks, adapt to the latest trends and embrace smarter, customer-focused aftersales strategies will be the ones to earn lasting loyalty. And in doing so, they’ll turn aftersales into a true driver of long-term value.
