The CBO of Hero MotoCorp states that EVs have the potential to boost customer loyalty among dealers.

Hero MotoCorp’s chief business officer, Ashutosh Varma has stated that electric two-wheelers can result in retaining more customers as they reduce the possibility for traditional servicing. 

EVs Could Improve Service Retention

Varma expressed his views on FADA conclave and said that the current growth of the ICE two-wheeler market hints that EVs are highlighting traditional motorcycles and scooters rather than completely replacing them. 

He also added further that, “The way the ICE business is growing, it doesn’t look like EVs will completely replace them.” One of the potential advantages is customer retention as Verma mentioned that average retention rate in ICE business is around 60%, while EVs could also further push that higher. 

However, EVs have few moving components and require less routine maintenance as compared to ICE vehicles, which means a higher percentage of EV owners are returning to authorised service workshops and could help offset some of the reduction in conventional service and parts revenue. 

Varma also pointed to software as another major source of income for the dealers, as EV manufacturers are providing modular, paid software and technology features, which provides the opportunity to dealers to earn more services rather than conventional workshops for ICE scooters. 

He also referred to this and said, “The nature of revenues will be continually evolving and EVs are the prime example of this."