The electric vehicle (EV) revolution in India is facing a significant hurdle: the plight of its dealerships. A recent survey of EV dealers paints a stark picture of an industry in distress. Approximately 80% of dealerships are either shuttered or on the brink, a consequence of several interrelated challenges.
Profit margins are razor-thin. While spare parts and servicing offer minimal returns, battery replacements hold the promise of higher margins. However, frequent water damage to batteries and a lack of in-house repair skills plague the reality. Dealers and customers unfairly bear the brunt of battery problems, adding to their troubles.
Moreover, the EV market is characterized by a lack of differentiation. Many brands offer strikingly similar products, often relying on identical Chinese components. This homogenization stifles innovation and erodes consumer trust.
The absence of a robust after-sales service infrastructure, prioritized over sales targets by manufacturers coupled with limited financing and insurance options further trap dealers in a financial squeeze, thus compounding the problem.
The survival of EV dealerships is critical to the industry’s overall health. A shift in focus from mere sales figures to a comprehensive ecosystem that prioritizes after-sales support and customer satisfaction is imperative. Without this fundamental change, the promise of a cleaner, electric future in India risks being derailed.
Reference- EV DOCTOR™ survey, Clean Technica, EV Reporter, Inside EVs