EVs threaten dealer service revenue as India's OEMs rethink margins and workshops
Rising EV adoption erodes the after-sales service income that props up car dealerships. With EV margins at 6-6.5% versus 3-4% on ICE, but far lower servicing needs, OEMs like Tata, MG and BMW must rework sales economics, subscription features and workshop infrastructure as penetration climbs toward a 30-35% threshold.
How rising EV adoption threatens car dealership service revenue in India, forcing OEMs and dealers to rethink sales margins, subscription features and workshop infrastructure across Tata, MG, BMW and other brands.