Analysis by leasing company, Fleet Assist in the UK, has highlighted some of the challenges that aftermarket workshops will face as battery electric vehicles grow in popularity.
Fleet Assist's analysis compared the service costs of internal combustion engine vehicles and battery electric vehicles. It found that for a minor service parts value on an EV service was 18% less than ICE, while the cost of fluids was 70% less.
The figures for a major service were even more concerning from an aftermarket viewpoint, with parts 58% less and fluids 63% less. Fewer fitted parts means reduced labour times resulting in lower average invoice value. Fleet assist believe that without making adjustments to their operating practices garages could face a gross profit drop of up the 74% in a fully electric scenario. At the same time garages are facing rising labour costs and overheads and the need to invest in new technology.
Fleet Assist supply chain director Nikos Kotrozos said, “The trends and future service maintenance and repair forecasts highlight the requirements for garages to embrace and invest in new technology led solutions ranging from vehicle diagnostic upgrades to parts ordering systems.” He added, “The possibility of introducing smart pricing for services such as delivery and collection in exchange for a reduction in other fees could be one way of maintaining revenue and margins whilst not diluting customer service.”
While the car parc is many, many years away from a predominance of EVs, this study does highlight the challenges of changing technology and the need for garages to be making wise investment decisions. When ICE service and repair opportunities do start to decrease it will be important for progressive workshops to be ready to offer diversified services such as ADAS and A/C servicing as well as being ready for EV service and repair.