The search for new revenue
According to our CEO Patrick Vanbrabandt, one of the most fascinating challenges in the automotive industry is the shift in business models. Where they, and car dealers, used to gather a big portion of their revenue with after-sales maintenance services, this revenue has dramatically decreased with the rise of electric mobility (which needs a lot less manual upkeep).
That is why we see a lot of brands experimenting with the search for new business models. Here are some of the ways that car brands are tapping into new revenue markets:
1. Subscriptions: Tesla, BMW, Volkswagen, Toyota, Audi, and others brands are exploring software-based features that can be unlocked via subscription. Examples are Tesla’s Full-Self Driving (Supervised) and several Mercedes’ Me service packages (except for the comfort package).
2. Data monetization: now that cars – and especially EVs – have become rolling computers, they generate vast amounts of data. According to Mozilla, 84% of the car brands they reviewed in a study, shared personal user data with service providers and data brokers. Examples are sharing vehicle usage data with insurers or city planners.
3. EV Infrastructure: some care brands are offering broader EV infrastructure services for charging, (Tesla and Volkswagen), energy storage (Tesla's Powerwall or Nissan's xStorage) and battery leasing and swapping (NIO).
4. Hydrogen: This is a bit of an outlier, seeing that it comes with many challenges of its own (like the huge energy cost of producing hydrogen), but there is also a part of the business model that few people realize, so we wanted to share it. Hydrogen cars are very similar to internal combustion cars in design and structure, and just as different from EVs. If hydrogen cars break through – which care brands like BMW and Toyota seem to be betting on - the “old” business model of car maintenance service could very well return.
Want CARYA to help you with your CRM, DMS, IT or marketing? Check our website for more!
1. Subscriptions: Tesla, BMW, Volkswagen, Toyota, Audi, and others brands are exploring software-based features that can be unlocked via subscription. Examples are Tesla’s Full-Self Driving (Supervised) and several Mercedes’ Me service packages (except for the comfort package).
2. Data monetization: now that cars – and especially EVs – have become rolling computers, they generate vast amounts of data. According to Mozilla, 84% of the car brands they reviewed in a study, shared personal user data with service providers and data brokers. Examples are sharing vehicle usage data with insurers or city planners.
3. EV Infrastructure: some care brands are offering broader EV infrastructure services for charging, (Tesla and Volkswagen), energy storage (Tesla's Powerwall or Nissan's xStorage) and battery leasing and swapping (NIO).
4. Hydrogen: This is a bit of an outlier, seeing that it comes with many challenges of its own (like the huge energy cost of producing hydrogen), but there is also a part of the business model that few people realize, so we wanted to share it. Hydrogen cars are very similar to internal combustion cars in design and structure, and just as different from EVs. If hydrogen cars break through – which care brands like BMW and Toyota seem to be betting on - the “old” business model of car maintenance service could very well return.
Want CARYA to help you with your CRM, DMS, IT or marketing? Check our website for more!
