PSA Group notes that EVs might threaten the car industry business model because of losing aftersales revenue.

Helen Lees, Head of Electric Vehicles & Connected Services at PSA Group, shared an interesting view that electric cars bring new threats to the car industry.

This time it's however not about the intensity of capital investments to make the switch (develop new models and retool the plants), but about the loss of aftersales revenue.

That's because electric cars are simpler and need less service than the conventional internal combustion engine equivalent.

For example, the upcoming Peugeot e-208 service plan envisions a third lower expense than in the case of the Peugeot 208 service plan.

We are not sure why a third lower revenue on a dealer level would threaten the car industry, especially if there will be an opportunity to earn more on selling usually more expensive electric versions. For sure, however, the business model will evolve.

PSA, for example, works on a new offer of shared mobility:

"“EVs are far simpler [than internal combustion engined vehicles]," she explained. "They need less parts, less time in the workshop. Ultimately, it means less time in aftersales. That’s why we’ve chosen to diversify into areas such as shared mobility.”"

"...longer-term, maybe our dealerships will become mobility hubs where there's dealership-based rental."

There are also other trends expected:

"“Whereas a lot of consumers might service their petrol or diesel cars themselves," she said, "they tend to come back into main dealerships for EVs, because the aftermarket operators aren’t necessarily ready for electric to the same extent as manufacturers are.

Source: Autocar