Dealerships depend heavily on parts revenue and service labor revenue. Typically, after you sell a vehicle, you earn from its service and labor over the next 7–8 years.
But in commercial vehicles, the local ecosystem is cheaper than OEM workshops, so today service penetration at dealerships is only 30–40%. The rest goes to outside garages.
However, in EVs, customers don’t have that choice. They either come to the dealership or the dealership’s technician visits them. So, in terms of labor revenue, things remain similar—whether it's software servicing or mechanical servicing, the customer pays for labor.
As for electrical components, they don’t need regular servicing. You can’t “open up” a motor; it's either lifetime use or plug-and-play replacement. This reduces parts revenue because of longer component life.
But many customers are now taking AMC (annual maintenance charge) packages—for example, in Euler, 30% of customers have taken AMC. AMC revenue ultimately flows to the company, just like insurance. Customers don’t mind paying because it gives them peace of mind.
In the category that Euler serves, the minimum fuel saving per month is around ₹10,000–12,000. So, customers don’t mind paying ₹2,000 monthly for AMC, which is assured revenue for us. That’s the business model: higher reliance on AMC, so revenue goes to both the company and the dealership.