New Players – New Game
In the last 2 years, more than 10 new Electric Vehicle (EV) suppliers have entered the European market. Their market share is (still) negligible. These new players have a different sales & aftersales approach, which brings a new dynamic to the traditional customer-distribution-service triangle. The main difference with regards to Asian market entrants compared to the European market: a customer journey over the entire life cycle is not the focus of OEMs.
In concrete terms, the rule of thumb is that 3 to 6 percent of the sales price of a vehicle is generated in aftersales over the holding period per year. However, the margin in aftersales is around 50% and thus plays a stabilising role in Europe compared to fluctuating sales figures.
On the one hand, Asian EV suppliers need to meet local customer needs, on the other hand, strategic partnerships with established service providers represent a great opportunity for both sides to develop their business. Speed is of the essence here: new EV providers need to forge the right strategic partnerships to end up with full showrooms, homologated vehicles and locally successful business models.
- Challenge: Crises in recent years have shown that global supply chain protection is becoming increasingly important.
- New opportunities: In a fast-changing market, speed, especially in strategic partnerships for new OEMs, is a Key Success Factor.
- Regardless of the drive, aftersales remains a lucrative pillar for OEMs and must be considered as early as possible in product development.