DiscoverCars.Com

EVs could improve dealer customer retention, says Hero MotoCorp CBO

-
EVs could improve dealer customer retention, says Hero MotoCorp CBO

Electric two-wheelers could help dealers retain more customers even as they reduce the need for traditional servicing, according to Hero MotoCorp’s chief business officer, Ashutosh Varma.

  1. EVs are currently complementing, rather than replacing, ICE two-wheelers, says Hero MotoCorp
  2. EV service retention could reach 85-90 percent
  3. Software-based services could create new revenue opportunities for dealers

EVs could improve service retention

Dealer revenue set to evolve

Speaking at a FADA conclave, Varma said the current growth of the ICE two-wheeler market suggests EVs are complementing conventional motorcycles and scooters rather than replacing them.

“The way the ICE business seems to be growing, it doesn't seem like EVs are substituting ICE sales. It's just like complementing ICE sales,” he said.

One of the potential benefits for dealers could be higher customer retention. Varma said average retention in the ICE business is around 60 percent, while EVs could push this considerably higher.

“In EVs it nudges us to move even further, possibly 85-90 percent,” he said.

While EVs have fewer mechanical components and generally require less routine maintenance than ICE vehicles, a higher proportion of EV owners returning to authorised workshops could help offset some of the reduction in conventional service and parts revenue.

Varma also pointed to software as another potential source of income for dealers. Manufacturers are increasingly offering modular, paid software and technology features, giving dealerships an opportunity to earn from services beyond traditional workshop jobs.

The revenue mix for dealerships is therefore likely to change as EVs become more common, rather than simply declining because vehicles need less mechanical servicing.

“The nature of revenues as you go forward will continue to evolve,” Varma said. “There are new avenues that will continue to emerge and EVs is an excellent example.”



from Autocar India https://ift.tt/FnNbufx

Comments

Post a Comment

Popular posts from this blog

New Maruti Dzire spy shots show first in segment sunroof

-
Image
Not too long after all-new Maruti Suzuki Dzire was first spied in India, the upcoming compact sedan has been spotted again. This time, the Dzire is winter testing in Himachal Pradesh, and the spy shots reveal that it’ll sport a segment-first at launch – a sunroof. New Maruti Dzire likely to be the most feature-rich compact sedan It’ll share most of its mechanicals with the Swift hatchback Dzire CNG is expected to arrive soon after the standard model 2024 Maruti Dzire interior highlights, features, exterior Until now, we expected the Dzire compact sedan have more or less the same features set as the new and upcoming Swift . The addition of the sunroof will definitely set the Maruti apart in the segment, though whether the new Swift will also receive it is yet unknown. In international right-hand-drive markets, such as the UK and Japan, the new-gen Swift does not get a sunroof. In top-spec form, the Dzire is likely to be the best equipped model in its class thanks to the sunroof...
Read more

390 Duke or Interceptor 650: Best bike for casual riding under Rs 4 lakh?

-
Image
Looking for advice on which new bike to purchase. Few things to note - Budget is INR 3-4 Lakhs. It will not be my primary mode of transport as I mostly use my car. The bike will be used 60-70 percent for Sunday morning rides, 10-20 percent touring and 10-20 percent maybe the odd office commute or coffee run. Prefer comfortable upright ergonomics. Do let me know if you need any further info from my end. Thanks in advance for your help! Rahul Khurana, New Delhi Autocar India says: You haven’t mentioned whether the bike you are looking for is meant to be sporty and exciting or calm and relaxed in nature, so we’ll share a few options at both ends of that spectrum. Since this is going to be a casual use motorcycle we’ll keep things like fuel efficiency as a low priority but all options mentioned here will have upright ergonomics. At the sporty end, there’s no beating the new Gen 3 KTM 390 Duke which offers the strongest performance available at this price as well as outstanding handl...
Read more

Dakar 2025: Daniel Sanders, Yazeed Al-Rajhi win

-
Image
The 2025 Dakar Rally has concluded after 14 gruelling days and nearly 8,000km. Toyota privateer Yazeeh Al-Rajhi emerged as a surprise winner in the cars class, becoming the very first Saudi Arabian driver to win the Dakar Rally, that too on home soil. In the bikes class, Daniel Sanders took a commanding win, handing KTM its 20th Dakar victory. Having taken on everything from sand dunes to rocky valleys, 70 percent of the competitors made it to the finish line – including 40 cars, 77 bikes, 1 stock car, 21 Challengers, 23 SSVs and 13 trucks. Sanjay Takale first Indian driver to finish Dakar Rally Martin Macik wins trucks title Dakar 2025 cars winner: Yazeed Al-Rajhi Perseverance paid off for Saudi billionaire Al-Rajhi, who wins the Dakar Rally on his 11th attempt. With several favourites like Carlos Sainz and Sebastien Loeb exiting in the first week itself, the battle for victory boiled down to Toyota’s Henk Lategan and Al-Rajhi. Lategan took the lead at the halfway point but ...
Read more