After-Sales needs restructuring for the EV-olution.

July 17, 2022
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India ranks 11th among 15 countries ranked for the EV-readiness of their markets, according to ADL’s Global Electric Mobility Readiness Index called GEMRIX. A study reveals that passenger vehicles will form 5% of total EV sales in India by 2030. With the advent of electric vehicles, the automotive experts are also thinking about the implications it will have on the profitability of the motor dealerships. The aftersales department need to ready themselves for a substantial change to their business model, as the country progresses on its path of electrification.

Due to the basic difference in powertrain technologies for combustion engines and electric engines, an electric car does not require service and maintenance like a fuel-powered car. This difference is mainly due to a lack of need for oil change and with fewer moving parts required. The factors that will decide how EV sales will impact the aftersales aftermath include estimated EV sales rates and even gauging the impact of average annual mileage on aftersales inflow into workshops. The costs that franchise dealers will incur to install a number of charging points.

On the other hand, the reduced traditional service revenue opportunities may be offset by increased customer retention. Franchised dealerships in the near future may have to invest in specialist tools, as well as training to meet the electric vehicles servicing and maintenance needs.

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