The automotive industry is at a pivotal moment. As vehicles become increasingly connected and software-driven, the traditional model of one-time sales is giving way to a new era of ongoing customer relationships and recurring revenue. For original equipment manufacturers (OEMs) and dealers, the aftersales segment—long seen as a support function—is emerging as a major growth engine. By leveraging connected car data, artificial intelligence (AI), and digital service marketplaces, automotive leaders can unlock new revenue streams, deliver greater customer value, and future-proof their business models.
Historically, the automotive business has focused on the initial sale, with aftersales—maintenance, repairs, and parts—serving as a secondary revenue stream. However, the rise of connected vehicles and digital platforms is transforming this dynamic. Today’s vehicles generate vast amounts of data, enabling OEMs and dealers to engage with customers throughout the ownership lifecycle, anticipate their needs, and offer tailored services that go far beyond the basics of oil changes and tire rotations.
This shift is not just about technology—it’s about reimagining the customer relationship. Instead of a linear journey that ends at the point of sale, the new model is circular and continuous, with multiple touchpoints for engagement, value creation, and monetization.
One of the most promising opportunities is usage-based insurance. By harnessing telematics and real-time driving data, OEMs and their partners can offer personalized insurance packages that reflect actual driving behavior and vehicle usage. This approach benefits both customers—who can receive fairer, often lower premiums—and OEMs, who gain a recurring revenue stream and deeper customer insights. Leading automakers are already partnering with insurers or launching their own UBI products, bundling insurance with other services in flexible, subscription-based models.
Predictive maintenance is another game-changer. By analyzing sensor data and vehicle diagnostics, AI can identify potential issues before they lead to breakdowns, enabling proactive repairs and minimizing downtime. For customers, this means greater safety, convenience, and peace of mind. For OEMs and dealers, predictive maintenance drives service retention, reduces costly recalls, and helps preserve the value of leased and owned vehicles. Tesla, for example, has pioneered prescriptive maintenance features that automatically order parts and schedule service before a failure occurs, setting a new standard for the industry.
Software-defined vehicles open the door to ongoing feature enhancements and upgrades delivered via over-the-air updates. Customers can purchase new capabilities—such as advanced driver assistance, performance boosts, or comfort features—long after the initial sale. This “pay more, play more” model is already being adopted by brands like BMW, Mercedes-Benz, and Tesla, who offer everything from heated seats to increased battery range as on-demand, digital purchases. OTA updates also enable rapid deployment of safety improvements and bug fixes, reducing the need for physical recalls and service visits.
The next frontier is the creation of digital service marketplaces—platforms where customers can access a curated ecosystem of OEM and third-party services, from maintenance and repairs to insurance, charging, and mobility solutions. By integrating these offerings into a seamless, app-based experience, OEMs can become the orchestrators of a broader mobility ecosystem, capturing value at every stage of the customer journey. Examples like Renault’s Plug Inn peer-to-peer charging network demonstrate how digital platforms can foster community, drive adoption, and generate new revenue streams.
As the industry evolves, the role of the dealer is also being redefined. Dealers are transitioning from traditional sales intermediaries to trusted advisors and service consultants. In the future, dealers will:
This new model creates more frequent, high-value interactions with customers, driving loyalty and opening up additional revenue opportunities beyond the showroom floor.
To succeed in the post-purchase era, OEMs and dealers must embrace significant organizational and technical change:
The future of automotive aftersales is bright for those who act boldly. By monetizing connected services and predictive maintenance, OEMs and dealers can:
The winners will be those who put the customer at the center, leverage data and AI to anticipate needs, and orchestrate seamless, end-to-end experiences across the mobility ecosystem. The journey from one-time sale to lifelong relationship has begun—and the time to accelerate is now.