The automotive industry is not so new for everybody. There are dealers
out there (which those in emerging markets wouldn’t believe) who are
celebrating their one hundredth anniversaries. Based off their
experiences, we can conclude that the majority of a dealership’s
profitability stems from aftersales. Therefore, when going to a
dealership today, one should not only expect standard services but also
the selling of more services. This is known as upselling.
Green Vehicles come in all shapes, sizes and colors, and the push for their development is consistently growing and fueled by our desire to better the environment, high oil prices and government incentives. Every one of us knows about this trend, and some of us may even drive one ourselves. But what about the differences between the types of green vehicles, as well as the future expectations and market trends?
In the middle of 2014, incadea Business Consultants ran a survey seeking answers on how effective dealerships were at upselling services. At what stage of the service lifecycle did they sell, how valuable is upselling, and what happens after the car leaves the workshop?
First of all, let us take a look at the history on how markets have developed over time. Back in the early 2000’s, I was working at a big international OEM, which also happened to have operations in Russia. Russia was booming at that time! Russia was our daily topic of discussions and friendly arguments. Firstly, one of the main bets was how soon through the year Russia was going to sell their yearly quota? And secondly, where should we supply more cars for Russia from?