Might hybrids be the reply to aftersales revenues misplaced to EVs?

Might hybrids be the reply to aftersales revenues misplaced to EVs?


Automobile retailers ought to develop aftersales revenues from elevated hybrid automotive enterprise to melt the monetary influence of the UK automotive sector’s shift to electrical automobiles (EV).

That’s the view of REALtime Communications after its evaluation highlighted the advantage of attracting elevated volumes of part-electrified automobiles into workshops.

As new automotive diesel gross sales are at present declining 50% year-on-year – from 11.4% to five.7% market share – hybrids now make up 36% of all new automotive registrations.

And knowledge associated to the typical service bill present that hybrids worth to automotive aftersales companies.

Between 2019 and 2021 the typical service bill was £289.84 for a diesel-powered automotive; £127.25 for an EV; £268.27 for a hybrid and £191.88 for a petroleum automotive, REALtime Communications discovered.

John Legislation, technical director REALinsights, mentioned: “The ache of the numerous lack of new automotive gross sales may have a fabric influence on aftersales within the subsequent few years, the growing gross sales of EVs will intensify this pattern.

“Whereas redefining the aftersales mannequin is likely to be seen as one thing to do with the shift to totally electrical, a broader method together with hybrids and attracting/retaining older petrol and diesel automobiles on the dealership is the best method and it wants to begin now to keep up aftersales income ranges.”

In a producer profile characteristic within the newest version of AM journal, Kia UK president and chief government Paul Philpott detailed his model’s efforts to keep up EV house owners contact with its franchised retailers amid a bi-annual servicing requirement.

The UK Authorities lately instructed that the adoption of EVs may very well be accelerated by the introduction of a gross sales mandate, with as much as half of all new vehicles doubtlessly required to be zero emissions by 2028.

REALtime Communications’ mentioned that hybrid automobiles can assist maintain income ranges extra constant than first thought within the short- to medium-term because the UK automotive sector prepares to ban the sale of all non-EV new vehicles by 2035.

This yr, service worth has been rising for hybrids and at present exceeds £270 per service, outstripping diesel revenues, it mentioned.

Legislation suggests a five-point technique to assist aftersales suppliers tackle the challenges forward:

  • Promote service plans with a give attention to opening used automotive service plans
  • Contemplate using longer used automobile warranties, with warranties confirmed to tie in buyer loyalty
  • Goal older used automobile house owners – retention and conquest
  • Optimise purple and amber work in your eVHC checks and follow-up
  • Open new aftersales income alternatives reminiscent of valeting


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September 2022