With new car diesel sales dropping 50% YoY from 11.4% down to 5.7% market share, REALtime Communications has warned of substantial potential aftersales revenue losses.
But, with Hybrids now making up 36% of all new car registrations, the service revenue generated from those sales will be welcome news for aftersales teams.
The reduction in revenues from Battery Electric Vehicles (BEV) that do not require a traditional vehicle service is significant. However, the revenues from Hybrid cars could perhaps soften the decline and help aftersales reimagine their proposition.
John Law, Technical Director REALinsights said: “The pain of the significant loss of new car sales will have a material impact on aftersales in the next few years; the increasing sales of BEVs will accentuate this trend. While redefining the aftersales model might be seen as something to do with the shift to fully electric; a broader approach including Hybrids and attracting/retaining older petrol and diesel vehicles at the dealership is the right approach and it needs to start now to maintain aftersales revenue levels.”
This year, service value has been rising for hybrids and currently exceeds £270 per service, outstripping diesel revenues.