Electric two-wheelers could help dealerships retain more customers despite having a lesser need of servicing, the chief business officer of Hero MotoCorp, Ashutosh Varma pointed out. In his comments on the changing dynamics of the two-wheeler industry, Varma noted that although electric vehicles would require less frequent servicing compared to conventional internal combustion engine motorcycles, their growing prevalence could be leveraged to forge stronger bonds with customers in the long run.
He forecast that EV service retention rates could go up to as high as 85-90 percent — a remarkable figure considering that in the past it has proven difficult for the industry to convince consumers to continue getting their motorcycles serviced at the same garage after the initial purchase.
“The fact that electric two-wheelers do not need oil changes or periodic engine servicing, which are routine procedures at any workshop, could be seen as an impediment to increasing service retention,” Varma conceded, adding that the nature ofthe work involved with maintaining an electric motorcycle creates “new opportunities” for dealerships. He noted that software-led maintenance, tech support, over-the-air updates, battery maintenance, connectivity features and other related services were coming onto the market, which represented a chance for established firms to rebrand and pivot towards providing motorcycle-specific maintenance and other products connected to the software and electronics of the vehicle.
In addition, as Hero MotoCorp itself is not positioning electric motorcycles as a replacement for internal combustion motorcycles in the near future, but rather something which would “co-exist” with them for the foreseeable future, dealerships could use this as an opportunity to appeal towards two separate customer bases. By focusing on increasing overall retention of electric motorcycle owners and creating a presence within the software and maintenance spheres, dealerships would be better positioned to weather the changes that first seem disruptive to the industry.