OEMs: Connected Cars Could Increase Service Revenues for Dealers

March 29, 2018
Analysts are taking note of the vast amount of data that U.S. OEMs could soon own as more vehicles become connected via the Internet, resulting in regularly recurring service revenues.

March 29, 2018—According to a recent ET Auto report, analysts are taking note of the vast amount of data that U.S. OEMs could soon own as more vehicles become connected via the Internet, resulting in regularly recurring service revenues.

Manufacturers like Ford and General Motors could charge a subscription fee for customers interested in accessing real-time, crowd-soured HD maps maintained by a network of millions of vehicles.

Analysts suggest automakers may soon be seen as “landlords” of mobile real estate, whose data could appeal to logistics firms and online retailers interested in opportunities that benefit them. Connected vehicles could, as a result, act as a large supercomputing platform for companies such as GM, which could generate some $8 billion in annual revenue if it were to charge an annual fee of $99 per vehicle.

Service revenues could also mean greater gross margins for automakers, analysts told ET Auto.

Sponsored Recommendations

Find the right shop management system to boost your efficiency

Find the right shop management system to aid in efficient scheduling, communication and payment processing

Craft a strategic marketing plan

Develop strategies and communicate them to your staff to keep you on track

Establish and track your KPIs: Technician Productivity

WHAT IT IS: Technician productivity refers to the time a technician is available to work measured against the actual time spent working on positive cash flow repair orders. Tracking...

Empower your technicians with the right tools for efficient repairs

Foster a highly motivated and efficient team to get vehicles out the door faster