Reframing aftersales for an EV future

Record EV sales are creating a hidden crisis for retailers but extending aftersales with value-add offerings could turn the tide says Duncan McClure Fisher, Intelligent Motoring

Posted on Apr 30, 2026 by |

March 2026 saw the highest EV sales ever the UK with EVs now representing over a fifth of all new vehicle salesi. While this is great news for environmentalists and EV retailers, the flip side is that retailers face a structural decline in servicing income. With fewer moving parts and the lower servicing needs, EVs unquestionably benefit consumers, but they are already leading to reduced servicing concerns for retailers.  

The outlook is also challenged by the increased rollout of driver assistance systems, which reduce the number of collisions. While this is a positive step forward for road safety, it also introduces new challenges for the aftersales sector. Fewer accidents can mean reduced demand for repairs, making it essential for retailers to adapt their business models to remain profitable. 

Value added protection products fit the bill 

With the scaling back of some traditional margin opportunities, retailers must identify new, profitable and scalable revenue streams.  These need to be vehicle agnostic, suitable for petrol, diesel and EVs, while delivering high margins, recurring and be attachable at point of sale. In response, value-added protection products are swiftly emerging as a solution. These target genuine driver needs and offer useful data points to help retailers drive sales.  

Driving revenue with Alloy Insurance 

A great example is Alloy Insurance. The persistent rainfall of last winter led to deteriorating road surfaces and a sharp rise in alloy wheel damage. In fact, Intelligent Motoring’s analysis of five years of alloy wheel claims data shows the average claim value has risen by 18%, with a further 10% increase recorded in 2025 compared with the previous year.  

Many EVs and premium vehicles are fitted with larger wheels and lower-profile tyres, which provide less cushioning against potholes. That combination of heavier vehicles, bigger wheels and poorer road surfaces is driving up both the frequency and cost of damage. 

With startling statistics like this, the Alloy Insurance option not only offers peace of mind to drivers but also welcome new margins for retailers. 

Filling the revenue GAP 

Meanwhile, another popular income stream for retailers is the opportunity to sell Guaranteed Asset Protection (GAP) insurance. One in four of all Intelligent Motoring’s GAP insurance claims in 2025 were theft-related. There was also a 17% rise in the average payout for the top claims which reflects not only the increasing value of claims, but also how quickly vehicles, particularly high-end EVs, can depreciate in today’s market, making financial shortfalls more likely and reinforcing the importance of GAP cover. 

Selling warranty peace of mind  

As drivers shift towards EVs they are entering a new era of uncertainty when it comes to repairs. While EVs require less frequent servicing, they can be up to ten times more expensive to repair than traditional cars.  

This presents a clear opportunity for retailers to step in, selling peace of mind to new EV owners with an extended warranty that includes drive battery protection. Of course, warranties can also be offered for ICE vehicles and the financial protection for the owner, helps ensure they can afford to bring the vehicle back to the retailer for any unexpectedly costly repairs.  

There’s no doubt that rising EV adoption is changing the aftersales landscape placing pressure on traditional servicing revenues. Retailers who embrace added value, vehicle agnostic products that really meet customer needs have the opportunity to replace lost income, while building stronger, long-lasting customer relationships, to keep then coming back time and again.