Battery after-sales companies

How will BEVs affect the aftersales market?

The growth of BEVs and the emergence of CASE mega trends in the automotive industry will have a transformational effect on the aftersales market. Substantial strategic changes requiring major up-front commitment (financial or otherwise) will be required to survive.

Will the EV market grow from aftersales?

The EV market is attracting a number of start-ups and new entrants (including established brands with no automotive industry experience). However, from the outset, their future revenue potential from aftersales will not be at the same level that established OEMs have been able to achieve.

Are EVs a good option for Aftersales?

The available aftersales revenue on a three-, four- or five-year old and older EV will be considerably less than for an equivalent ICE (internal combustion engine) vehicle meaning that the potential revenue available will decline.

How will a change in vehicle sales affect the aftermarket?

As the other CASE trends emerge, the total number of new vehicles sold is expected to decrease. Any drop off in new vehicle volume will directly impact the total sales potential in the aftermarket. Similarly, a shift in market dynamics from personal ownership to fleet could result in more pressure on price and slimmer margins.

Will aftermarket profit reduce by 55 per cent by 2035?

We believe that aftermarket profit of a typical OEM could reduce by as much as 55 per cent by 2035. It is critical for OEMs to start planning for the emergence of battery electric vehicles (BEVs) as this trend has the potential to have the biggest impact on aftersales in the short term.

How will the emergence of BEVs affect OEMs' aftersales business?

For example, Tesla has recently announced that their vehicles no longer require annual maintenance. It is not just the emergence of BEVs that will negatively impact OEMs’ core aftersales business. As the other CASE trends emerge, the total number of new vehicles sold is expected to decrease.