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Car dealers ‘already seeing drop in aftersales uptake due to increased electric car sales’

  • Car dealers are being urged to prepare for increased EV sales
  • EMaC predicts those without robust processes will risk losing aftersale revenue
  • It estimates some dealers have already seen aftersales absorption drop 50 to 60%

Time 10:53 am, November 5, 2023

Car dealers are being urged to prepare for the acceleration of EV sales in 2024 by having processes in place to secure aftersales work.

EMaC, which specialises in automotive retentions, estimates that some car dealers are already seeing 50 to 60% fewer aftersales absorption rates because of increased EV sales.

Manufacturers will be facing pressure next year to ensure that more than a fifth (22%) of their cars sold are electric, which will gradually increase to 100% by 2035 under the ZEV mandate.

However, with fewer consumables in an electric vehicles, car dealers could lose out if they aren’t prepared with processes that can ensure aftersales work from each sale, said EMaC.

Serkan Obuz, EMaC director for maintenance plans, commented: ‘With EVs already accounting for one in six of all new cars sold, franchised dealers run the risk of taking a major hit to their workshop revenues unless they have processes in place ahead of the ZEV mandate.

‘Across the sector, we estimate dealers without strong retention strategies are already seeing aftersales absorption rates reducing to around 50-60% because of increased EV sales.

‘To address the shortfall, dealers need to be achieving higher rates of aftersales retention from EV customers as they plan their 2024 targets.

‘The ZEV mandate needs to be viewed as an opportunity for dealers to refocus on the profitability benefits of having good customer retention strategies.’

EMaC explained that it had seen an increase in demand for plans covering the replacement of tyres and brakes as customers factor in the faster wear associated with the heavier weights of EVs.

‘The best-performing dealers are already innovating to create stronger cultures of customer satisfaction and loyalty by offering maintenance plans with every new EV they sell,’ said Obuz.

Rebecca Chaplin's avatar

Rebecca has been a motoring and business journalist since 2014, previously writing and presenting for titles such as the Press Association, Auto Express and Car Buyer. She has worked in many roles for Car Dealer Magazine’s publisher Blackball Media including head of editorial.

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