The shift toward electric vehicles is reshaping the automotive industry, and franchised dealerships are experiencing the effects firsthand. EV production is forecast to reach 70% of total vehicles by 2040 (Deloitte study), with EV sales projected to make up the majority of new vehicle sales by the same year (EY Mobility Lens Forecast).
As EVs require less maintenance compared to their internal combustion engine (ICE) counterparts, the traditional aftersales revenue model is under pressure to adapt.
To maintain profitability, dealers must find new ways to create value through efficiency, enhanced customer retention, and new service offerings in line with EV ownership.
Less maintenance, less revenue
ICE vehicles have long created steady revenue streams for dealerships due to their high maintenance and repair requirements. But traditional services like oil changes, fuel filters, or exhaust systems are no longer needed with EVs, and revision intervals are likely to be longer. Studies suggest EVs require 30%-50% less maintenance than ICE vehicles, which can reduce servicing and part sales revenue by up to 80% (Deloitte).
New opportunities
While EVs present their share of challenges, dealerships still have exciting opportunities to seize.
Adapting the aftersales model
In an environment where fewer service visits are needed, franchised dealerships can rethink the aftersales model and come up with new ways to generate revenue, such as:
- Revenue stream diversification by offering maintenance subscription plans, predictive maintenance, or building strategic partnerships with other industry providers.
- Consistent and context-based upselling: leveraging customer and vehicle data to create targeted, relevant offers for each customer.
- Automating manual processes: digitialising key areas such as appointment management can improve planning and efficiency and enhance the overall customer experience.
Redefining the customer experience
Customers today expect convenience, transparency, and digital-first experiences. Personalised interactions at every touchpoint give customers a sense of trust, keep them engaged, and increase retention – a key source of recurring revenue for dealers in the EV era.
With less repair need for EVs, aftersales departments have an opportunity to shift the focus to the customer journey and build retention initiatives that strengthen loyalty over time.
Supporting a seamless transition with Tjekvik
As dealerships work to adapt to the new EV landscape, Tjekvik’s self-service solutions can play an important role in maintaining efficiency and profitability.
Here is how Tjekvik helps aftersales departments streamline operations:
- Digitalises key aftersales processes, from appointment management to payment and vehicle drop-off and collection;
- Seamlessly integrates upselling and cross-selling into the self-service journey, with customisation vehicle make, model, or work order;
- Creates additional revenue through service plan leads and vehicle valuations;
- Enhances customer communication with timely, transparent updates.
In addition to increasing department efficiency, Tjekvik also enables aftersales teams to meet modern customer expectations and strengthen retention in order to offset the revenue decline associated with EVs.
The EV transition is certainly one of the most significant transformations underway in the automotive industry. For franchised dealerships, the journey is riddled with both challenges and opportunities – and most importantly, a chance to redefine what “service” means in the age of electrification.
To learn more about how Tjekvik supports aftersales transformation, get in touch with us.