VaaS: Another hole in the sinking ship of automotive afersales?

The global aftersales business – parts sales and maintenance services
through the dealer network – is a major profit pool for automotive OEMs and
dealers. It accounts for as much as 40% of the overall profit of some carmakers
and large, full-range dealerships.

How did aftersales become such a stable cash cow? This is mainly attributable
to the fact that for vehicles under warranty, OEMs have close to no competition
for the service and care of the cars they sell as most customers remain loyal
to the manufacturer they bought the vehicle from. Once cars are passed on to
their second or third owners, OEMs increasingly face the competition of the independent aftermarket (IAM) – repair shops offering cheaper labor rates and
parts to customers who are more price sensitive.

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