ith Vehicle as a Service (VaaS) expected to increase its market share by close to 33% by 2025, OEMs need to get ready for the impact on aftersales
The global aftersales business – parts sales and maintenance services
through the dealer network – is a major profit pool for automotive OEMs and
dealers. It accounts for as much as 40% of the overall profit of some carmakers
and large, full-range dealerships.
How did aftersales become such a stable cash cow? This is mainly attributable
to the fact that for vehicles under warranty, OEMs have close to no competition
for the service and care of the cars they sell as most customers remain loyal
to the manufacturer they bought the vehicle from. Once cars are passed on to
their second or third owners, OEMs increasingly face the competition of the independent aftermarket (IAM) – repair shops offering cheaper labor rates and
parts to customers who are more price sensitive.
To find out more, download our in-depth analysis!
Paul Kummer (1983) joined Berylls Strategy Advisors, an international strategy consultancy specializing in the automotive industry, as a partner in October 2021. He is an automotive downstream expert.
He has been advising automotive manufacturers in a global context since 2010. He has in-depth expert knowledge in the areas of sales and aftersales. His other areas of expertise include growth strategy development, business model development, portfolio optimization and digital transformation.
Prior to joining Berylls Strategy Advisors, he worked for Monitor Deloitte and Accenture.
Paul received his MBA from WHU Otto Beisheim School of Management and his Industrial Engineering degree from DHWB Mosbach.
Copyright Berylls
