Empowering dealers in the era of electric vehicles
As the adoption of BEVs increases, consumers in major markets are showing a growing preference for repairs and services via authorized dealerships. This trend, highlighted in a recent study by a leading management consultancy, is reshaping the balance between independent and authorized dealer groups. Consumers increasingly trust authorized dealerships for their expertise in handling newer and more complex EV maintenance requirements.
In this issue, we explore effective responses for dealers to maintain their competitive edge. We review the study that points to consumers favoring OEMs for BEV maintenance, outline strategies to enhance dealership capabilities in EV technologies, and discuss ways to overcome data access issues in markets lacking connectivity. Our goal is to provide you with comprehensive insights and practical tools to adapt and excel amid these emerging developments, whether you are an independent or authorized dealer.
Let’s get an overview of where dealers need to compete:
- Featured study: Growing preference for OEM repairs and maintenance
- BEV anxieties: Enhancing EV readiness and building consumer confidence
- Agency challenges: Overcoming OEM limitations and cultivating customer loyalty
- Staying ahead: Addressing data access challenges for dealers in offline markets
Growing preference for OEM repairs and maintenance
Roland Bergerโs recent Aftermarket Pulse study highlights key trends in consumer preferences for automotive aftermarket services, which are important for dealers to note. It shows a growing preference for OEMs to handle the maintenance and repairs of BEVs. This trend is driven by concerns over warranties and the specialized knowledge needed to maintain these vehicles.
Despite the increasing reliance on OEMs, independent workshops continue to hold strong positions in several key markets, including the USA, UK, France, and Germany. The report emphasizes that dealers must adjust to address these evolving demands.
TLDR: Consumers are increasingly preferring OEMs for BEV maintenance due to trust in their expertise, underscoring the need for all dealers to demonstrate EV proficiency.
Enhancing EV readiness and building consumer confidence
In light of the new findings above, which highlight concerns from consumers about the EV capabilities of dealerships, itโs increasingly important for dealerships to demonstrate their readiness to service EVs and adopt both EV technologies and digitalization techniques to meet these consumer needs. By leveling the playing field and ensuring access to the same tools and data as OEMs, dealerships can better serve their customers.
The following article explores consumer anxieties about EV range and introduces the Connected Cars App, which offers features such as live monitoring of the batteryโs state of charge. For dealerships, highlighting upcoming maintenance needs for consumers based on real-time and predictive data is a crucial way to digitalize, build confidence with consumers, and showcase their competence in handling EVs.
TLDR: Dealers must demonstrate their EV readiness with EV tools and products.
Overcoming OEM limitations and cultivating customer loyalty
Building on the emphasis of enhancing EV readiness and boosting consumer confidence, itโs crucial to address the broader strategic landscape in which dealerships operate. The widespread adoption of the agency model by OEMs significantly challenges dealerships by limiting their control over pricing and terms of sales, and at times, restricting access to brands in certain markets. These developments make it imperative for dealerships to adapt by embracing digital tools and data access strategies that can offset these constraints. This ensures dealerships maintain competitiveness and serve their customers effectively, providing access to the same tools and data as OEMs.
While we explore strategies to mitigate consumer EV concerns through technological solutions like the Connected Cars App, itโs crucial to enhance dealership service offerings. Tools such as real-time battery monitoring and predictive maintenance capabilities improve service and help reclaim a competitive edge. Leveraging telematics and products like ConnectedWorkshop empowers dealerships to democratize data access, ensuring they remain responsive to consumer demands in an increasingly competitive market.
TLDR: Dealerships must embrace digital tools and data strategies to enhance service excellence and build customer loyalty.
Addressing data access challenges for dealers in offline markets
One final aspect of data democratization that directly affects dealers is the disparity between regions that are online versus those that are offline. Dealer groups operating in markets without connectivity options have a unique opportunity to proactively build their capabilities, customer loyalty, and reputation by adopting the latest features. By establishing connectivity with and for their customers, dealers can build robust relationships, ensuring they are well-prepared for potential new entrants, whether OEMs or other competitors.
TLDR: Dealer groups in offline markets should digitize in advance of OEM competition.
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