MIDDLE EAST

The future of automotive

distribution in the Middle East
KEY IMPLICATIONS FOR
THE MIDDLE EAST MARKET
 MANAGEMENT CONTENTS
SUMMARY

A
utomotive sector distribution is undergoing a transformative journey 1/ INTRODUCTION 4
impacted by megatrends around new mobility concepts, autonomous
driving, digitalization and electrification. This has resulted in several
new business models being explored, with OEMs, distributors and new 2/ BUYING A CAR IN THE MIDDLE EAST
players, such as digital platforms and tech providers, looking to introduce IN THE ERA OF DIGITAL EVERYTHING 5
highly digital and agile sales models.

In parallel, as the number of electric vehicles rises, diversification of the 3/ FORMALIZATION OF USED CAR CHANNELS
revenue pool and the relevance of value-added services will increase AND INNOVATIONS IN THE BUSINESS MODELS 7
in the distribution business. Greater focus on the certified pre-owned
(CPO) business and expansion of subscription sales should also help
distributors maintain their relevance as car ownership becomes relatively 4/ SUBSCRIPTIONS FOR THE
less important for younger generations. AUTOMOTIVE INDUSTRY 9

5/ RISE IN VEHICLE ELECTRIFICATION

AND IMPLICATIONS FOR CAR DEALERS 11

6/ INCREASING SIGNIFICANCE OF
VALUE-ADDED SERVICES 13

7/ FINAL CONSIDERATIONS 14
Cover photo AerialPerspective Works/Getty Images

Roland Berger 2 Future of automotive distribution in ME

1/ Introduction

Automotive distribution in the Middle East is expected to evolve significantly in

1)
B / Overview of the potential business impact of key trends –
Way forward for distributors and dealers

the coming years. The region witnesses 2–3 million light vehicle sales every year Key automotive Impact on revenues Impact on CAPEX/OPEX
distribution trends for distributors/dealers for distributors/dealers
and is home to a ~35 million passenger car fleet.

Rise in the usage of digital Set-up costs

Given the limited presence of local manufacturing activity, dealers and distributors channels by customers
No major impact
for online channel
have long been key partners for OEMs entering the region, taking more of a leading Potential way
Formalization of used car Potential rise Increase in CAPEX as forward – To be
role in enabling sales compared with other markets. Local distributors, in fact, have channels and innovation in in used car well as associated OPEX evaluated
invested heavily in building the local image of the brands while integrating business models sales activity for used vehicle business (case by case)
throughout the sales and aftersales value chain.
Evolution in the car Distribution of Dependent on whether
ownership trends – rise of
subscription/other models
revenue realization
over longer term
? OEM offers subscription
benefits to dealers
Enhance focus on
non-traditional
Roland Berger's MADE framework outlines the four key trends that will shape sources of revenue
the automotive industry of tomorrow: Mobility, Autonomous, Digitalization and Rise in vehicle electrification Potential decline in Decrease in aftersales
Diversify into other
Electrification. The infographics below illustrate how these trends are already aftersales revenue arm's operating costs –
profitable automotive/
CAPEX for workshops
transforming the regional landscape of vehicle sales and distribution activities in adjacent businesses

the Middle East. A B Increase in offerings Rise in one-time/ Increase in associated

for value-added services recurring revenue operating costs for
value-added services
While some regional players have already started integrating these trends in their
strategies, we expect more such efforts in the coming years.
1) CAPEX: Capital expenditure; OPEX: Operating expenditure
Impact Increase No/limited impact Decrease
Source: expert input, Roland Berger
1) Middle East refers to the following countries: Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria,
United Arab Emirates and Yemen

2/
Non-exhaustive
A/ "MADE trends" are defining key automotive distribution trends Buying a car in the Middle East
in the Middle East in the era of digital everything
Key trends impacting automotive distribution Associated "MADE" trend Impact timeline The digitalization of all aspects of our life and the unstoppable technological
advancements find a perfect match in Middle East consumers, where two-thirds of
Customers increase their usage of digital channels Increased digitalization leading to higher Short-mid term
for research and purchasing reliance of customers on digital channels
the current population is aged 35 or under and Internet penetration has reached
~ 96% in key markets (such as the UAE and Saudi Arabia).
Second-hand vehicle sales become more Rise of multiple online players with varying Short-mid term
organized and new sales models are deployed business models for used car trade Buying a car is no exception – according to data, 96% of prospective auto buyers
in the UAE and Saudi Arabia initiate their purchase journey online, leveraging the
Drivers are less attached to vehicle ownership – Increase in preference for shared mobility Short-mid term Internet to research and explore their new car. C
subscription and usage models become more over vehicle ownership
widespread
Up to two-thirds of this research is conducted on mobile devices such as smartphones
Electric vehicles are more prevalent and transform Increasing penetration of electric vehicles, Mid-long term
and tablets. Once they find their perfect car, over 50% of customers would also use
the automotive distribution business impacting vehicle sales models and aftersales the Internet to signal their interest and get quotes, continuing their all-digital
business
experience.

Dealers increase their offerings of value-added Electrification and mobility driving advanced Mid-long term
services services such as battery/charging or smart
In many cases, the very first time customers approach dealerships and transfer their
mobility solutions journey to the real world is at the moment of finally closing the purchase of their
vehicle. Moreover, even there, customers use their smartphones to support their
Overview of New Autonomous physical shopping experience with details on configuration, finance package,
Digitalization
1) Middle East refers to the following countries: Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Electrification
MADE trends United Arab Emirates and Yemen Mobility Driving
accessories and services.

Roland Berger 4 Future of automotive distribution in ME Roland Berger 5 Future of automotive distribution in ME
 Non-exhaustive

C/ Digitalization statistics from Roland Berger's Automotive Disruption Radar, June 2022 D/ Digitalization of the automotive purchase journey in the Middle East
Usage of Internet in vehicle purchasing – To what extent will you use the Internet? (average % of
Customer research Purchase Aftersales Trade-in/
people who selected the usage) and awareness (new car) used car sales

… to inform me about the car … to buy directly • Pre-landing activity • Vehicle purchase • Service reminder • Listing
… to get offers to buy
itself, its features, etc. on the Internet (advertising …) • Configuration • Service booking • Offer/lead
• Vehicle browsing • Contract signature • Service agreement management
• Vehicle configuration • Legal and admin • Purchase of parts • Purchase
Bahrain 85 55 15 Key
• Financing exploration (registration) • Repair status tracking • Trade-in
activities
Kuwait 85 45 15 • Offer/lead • Payment and follow-up
Oman 80 35 10 management • Added services • Payment
• Test drive • Warranty extension
Qatar 80 50 20 • Financing
Saudi Arabia 80 50 15
UAE 80 50 15
Digitalization
level
China 90 80 30
Europe 1) 75 53 16
United States 75 40 20 Activities with current high degree of digitalization Digitalization level Low High
Source: Roland Berger
Global average 78 52 16

1) Average score for Belgium, France, Germany, Italy, Netherlands, Norway, Spain, Sweden, UK
Source: RB online survey September 2022: 22,704 participants – Participants by country: Bahrain (152); Belgium (976); Brazil (1,002); Canada (999);

3/ Formalization of used car channels

China (987); France (977); Germany (999); India (998); Indonesia (1,013); Israel (984); Italy (975); Japan (1,000); Kuwait (300); Netherlands (988); Norway (964);
Oman (200); Qatar (300); Saudi Arabia (1,000); Singapore (961); South Korea (996); Spain (978); Sweden (978); Thailand (1,000); UAE (993); UK (1,001); USA (983)
and innovations in the business models

The Middle East (ME) market witnesses a higher relative level of used car
To accommodate this evolution and the increasing consumer preference for digital sales, transactions every year. A total of 800k+ used cars were sold in the UAE in 2019,
Middle East distributors, dealers and OEMs are revamping their platforms and digital implying a 3.5:1 ratio of used to new car sales in the country. The used car sales
ecosystem to include ever more services and enhance the buyer experience. D trends are expected to stay strong in the coming years, with the sale of over
1 million used cars anticipated annually in the UAE by 2025, for example.
While the direct online purchase of cars in the Middle East is not fully developed, almost
all OEMs/NSCs (National Sales Companies) have started to progress toward the The ME market currently has three major categories of players in the used car
implementation of an omnichannel journey. This channel strategy combines physical segment. Along with the independent used car dealers and franchise-based
experience with advanced digital services and platforms for enhanced consumer dealers, there has been an increasing proliferation of online-focused players
interaction. Digitalization does not stop at the point of purchase, with aftersales and with varying business models. Some of these business models include classified/
trade-ins being digitalized as well. Immediacy and superior experience are among the listing, marketplace and online auction-based sales.
main reasons why online channels have become so popular.
There is a concerted effort from the used car players to create a seamless used
The transition to the digital channel generates significant amounts of customer data that car journey, offering attractive and easy-to-access financing options as well as
can be leveraged for advanced product, service and channel offerings. Given the value-added services such as doorstep test drive and delivery options. To
increasing relevance of data-driven business decisions, OEMs are incorporating increase consumer confidence around second-hand vehicles, the majority of
standard practices throughout their sales network in order to control the data. them have started to offer detailed certification reports, coupled with extended
aftersales and warranty packages. E
However, certain customers cite price transparency as one of the key barriers to
finalizing their purchase online, as they fear they could get a better deal at the dealership. A fundamental shift is expected in the used car market structure going forward.
Also, as human interactions are not fully replicable online, dealers should aim to become Historically, consumers in the Middle East exhibited strong preferences for C2C
an experience center, bringing customers closer to the brand/vehicle in the offline (customer-to-customer, peer-to-peer) channels for used car sales. However, these
touchpoint(s) of their journey. This can be done through a variety of formats that favor are expected to decline with the anticipated increase in customer confidence in
client convenience and proximity at each step, such as pop-up and urban stores. the organized segment led by the independent and franchise dealers.

Roland Berger 6 Future of automotive distribution in ME Roland Berger 7 Future of automotive distribution in ME
E/ Current landscape of used car operations in the Middle East: Case study for the UAE The penetration of strong, dedicated certified pre-owned (CPO) programs
among the leading new car dealers in the UAE is currently 60%–70%. The used
Online-focused platforms Independent used car Franchised dealers
operating across various dealers (mostly part of with used car
car business presents a strong opportunity to franchise dealers to diversify their
business models (e.g. traditional automotive business presence revenue sources. Hence, we expect used car sales from franchise dealers to
classified, marketplace, business groups)
Categories
online auctions)
witness the strongest growth in the coming years (3x–4x sales in the UAE).
of used car
operators in
the market • SellAnyCar.com • Copart • Premier Motors It will be important for automotive dealerships to seek OEM support and
• Carnab • Al-Futtaim Motors • AGMC launch interactive digital platforms for their CPO business. An omnichannel
• CarSwitch • Sun City Motors • Abu Dhabi Motors
• Dubizzle Cars retail strategy is expected to be the key to ensuring rapid ramp-up of the
used car business. Such platforms will also offer data-driven insights to
Money back One-year Delivered to your Multiple financing enrich the dealers' customer offerings. As the market evolves, we expect new
guarantee warranty doorstep options
Snapshot business models around subscription and leasing to gain prominence for used
of measures
taken by the cars as well. F
A 10-day return policy Drive your car for one Simple viewings at your Hassle-free and
used car
on any car purchases year with the peace home or at any of quick financing
players –
through Carnab of mind of a new car. our national branches made possible The greater penetration of digital platforms increases the footprint and visibility of
case study
You can even choose to
for Carnab used cars across the region and beyond. Dealers may leverage such platforms and
extend it by another year
a coherent export/logistics infrastructure to offer their used vehicles in markets such
Source: online channels, dealers' websites, Roland Berger as Yemen or some African countries.

The transition to EVs also opens up new opportunities for used car sales – more
price-sensitive customers will tap into the used car market to access EVs with lower
F/ Used car market structure and expected shift: Case study for UAE financial commitment. The residual values of EVs and their success in the second-
hand market is still uncertain, as EVs are currently depreciating faster than ICEs
Expected trend
Used car market structure
in next 4–5 years Deep dive into due do quicker obsolescence.
potential growth
Business drivers for
1. Source 2. Wholesaler 3. Retailer franchise dealers' In turn, opportunities may arise for dealers to drive the transition to electric through
model
CPO business special offers and control of remarketing for used EVs.
C2C business
C2C Direct to customer is expected
• Support of OEM

4/
to go down
pre-owned programs
Subscriptions for the automotive industry
E-marketplace for
• Adoption of an exten-
C2C/dealer-based
sive vehicle valuation
sale The overall shift in consumer preferences toward the shared economy and the
and certification
program enabling associated models of ownership have impacted how people relate to their vehicle
seamless buying and
Moderate to
and the value they associate with owning one. Notably, younger generations are
selling of used cars
Used car dealers high growth shifting toward more flexible solutions characterized by low capital commitment.
Used car
Consumer C2B2C dealerships is expected for • Building of strong
independent
In fact, 65% of people surveyed globally in our ADR study are already very familiar
digital presence to
Independent dealers offer end-to-end with new mobility concepts, such as car sharing and ride hailing.
dealers services including a
Trade-ins digital valuation tool
at new car In such models, customers subscribe to the service by paying a monthly/yearly fee
dealerships • Customized financing
Franchise dealers
for which they get to drive the car with all expenses included (except for gas).
programs based on
Multifold
vehicle valuation Subscription plans come with flexible tenures, typically ranging from one month to
growth is 48 months. The customer has the flexibility to upgrade the vehicle and associated
• Standard and add-on
Auctions expected for
Semi-organized/ franchise
warranty and aftersales services at some point during the contract.
Business B2B2C services linked to
unorganized dealers
Brokers channels vehicle valuation
While Europe remains one of the leading markets by revenues for such services,
with Geely's new brand (Lynk and Co) having opted for subscription as their go-to-
Source: expert input, Roland Berger

Roland Berger 8 Future of automotive distribution in ME Roland Berger 9 Future of automotive distribution in ME
G/ Overview of key operating models across the subscription playbook in the Middle East management and end-of-life management capabilities, in order to drive profitability.
However, this will entail managing the risks associated with working capital,
1. Pure-play 2. Brokerage
3. Rental residual value and overall asset ownership by the entity managing the service.
subscription subscription 4. OEMs
companies
platform platform
OEMs are also adapting to the evolution in consumer preferences by intensifying
Subscription of Subscription of Subscription as an Subscription as a
their focus on B2B and fleet sales and developing tailored products for the segment.
Operating
vehicles – Platform vehicles – platform acts additional service financing option for Vehicles dedicated to subscription and fleet sales are offered with more standardized
manages own stock as broker for dealers offering OEM vehicles
model
(no own assets or fleet
specifications and finishing. Some OEMs have also launched their own proprietary
management) subscription service, such as Porsche and Volvo.

• Subscription business • Leverage network • Leverage network • Leverage existing client

In addition to this, OEMs are now offering specialized vehicle features as part of a
as core activity and client base and client base base of dealer network
• Full margin control • High control over • High control over • End-to-end control monthly or yearly package (such as Tesla offering its Autopilot function on
Strengths
• Full customer vehicle sourcing vehicle sourcing over pricing and margin
subscription), transforming certain optional extras into an on-demand function that
journey awareness and life cycle and life cycle • Control of the vehicle
and management lifecycle can generate additional revenue. This could also imply limited upselling opportunity
for distributors where OEMs are selling these services direct to customers as
• Balance sheet risk • Limited price power • Cannibalization of • Cannibalization of subscriptions.
and fleet management and margin control existing rental and existing sales and
• Brand establishment • Limited control over mobility business leasing channels
Weaknesses
required dealer-managed • Potential conflicts

5/
processes of interest with
dealer network Rise in vehicle electrification
and implications for car dealers
Examples • MOOV by Al-Futtaim • Invygo • Selfdrive.ae • Yet to be deployed
(Middle East) • Swapp • Carasti in the Middle East
Electrification is currently a key automotive disruptor across markets, with some of
Source: Roland Berger
the markets, such as Norway, significantly leading the electrification curve (>70%
xEV penetration in 2021). By 2040, we expect 40%–50% of global new light vehicle
sales to be electric. In the Middle East, we expect Saudia Arabia (KSA) and the UAE
market model for the region, the demand for such services is also expanding in the to also observe a significant rise in battery electric vehicle (BEV) penetration in the
Middle East (especially in the GCC). coming years. For KSA and the UAE, 40%–75% BEV penetration in new car sales
is anticipated by 2035. H
We see three major types of benefits driving the customer appeal of subscription
models: Regulatory push in both countries will be key to driving demand. While a certain
A. The simplified digital experience offered by subscription platforms, enabling level of penetration may be reached on the basis of OEMs' EV offerings and the
an all-digital purchase journey consumer pull effect, a much higher penetration can be achieved with regulatory
B. Lower ownership risk manifested in lower capital commitment and an push such as emission restrictions and ICE phase-out.
absence of residual value risks
C. Greater flexibility to upgrade vehicles and change ownership patterns Although Saudi Arabia currently has <1% EV sales, the upcoming local
The quest for a profitable business model associated with subscription often relies manufacturing by two EV-only brands (Lucid and Ceer), charging infrastructure
on the ability to effectively manage the purchase price of the fleets. set-up and increasing customer awareness are expected to drive EV sales in the
medium to long term. High EV penetration is a core focus for Saudia Arabia,
MOOV is the most relevant case study for the Middle East. The platform is owned considering the electrification and sustainability goals of the Saudi Arabia's Vision
by a long-time Toyota distributor in the UAE (Al-Futtaim) and offers subscriptions 2030. The UAE witnessed ~3k BEV sales in 2021 (~2% penetration), with Tesla
as short as one month on the vehicles for which the company is an official distributor. capturing ~60% market share. Going forward, we expect a steep rise in EV
Al-Futtaim's move sets a precedent for the region and proves the potential advantage penetration. H
dealers may have in such an ecosystem. G
The UAE's electrification growth will be led by its expanding EV charging network
Distributors and dealers with existing large fleet sales could be able to secure lower (300+ charging stations installed currently), availability of new EV models and
purchasing prices from OEMs and insurance providers, while leveraging their fleet sustainability targets.

Roland Berger 10 Future of automotive distribution in ME Roland Berger 11 Future of automotive distribution in ME
H/ EV penetration scenarios in the Middle East: Case study for KSA and the UAE I/ Impact of electrification on the Middle East aftermarket

Car parc Aftersales The powertrain of electric vehicles is less

EV penetration scenarios in Saudi Arabia, EV penetration scenarios in the UAE, complex than traditional combustion
2020–2035 [% of new light vehicle sales] 2020–2035 [% of new light vehicle sales] vehicles, and distributes power differently,
Total vehicle parc Service revenues and car maintenance lowering the need for maintenance:
is not expected needs of electric vehicles are almost
to increase through 50% less than those of fuel-based cars A. Brakes: Typical brake pad life is
Base case High case 75% the introduction extended from 20,000 to 40,000
of EVs, as there will -60% Fuel vehicles miles on ICE vehicles to more than
60% instead be a Electric vehicles 100,000 miles with EVs
57% 55% substitution of
traditional vehicles B. Oil changes and other engine
39% maintenance: EVs never need oil
36% -55% to -60% changes or ICE-related maintenance
30%
20% C. Parts: An EV drivetrain has fewer
14% than 1/10th of the moving parts of most
10% 10% ICE vehicles, leading to fewer part
3% 2–3% replacement requirements
0% Failure repair Maintenance
Source: expert input, Roland Berger
2020 2025 2030 2035 2020 2025 2030 2035

Electrification in KSA Electrification in the UAE

6/ Increasing significance of value-added services

Some of the key considerations and enablers that are In the UAE, public entities are actively involved in driving the
­expected to drive the adoption of electric vehicles in KSA growth of EV solutions in the country. Emirates such as Dubai
will be ­local availability of EV vehicles, as well as deployment have announced programs for swapping taxi fleets for electric
of EV charging infrastructure. Consumers in KSA will also and hydrogen vehicles as well as setting up 300+ charging In the era of electrification and shared mobility, car dealers are increasingly
need to be educated about EVs in order to increase their stations. Government organizations in Dubai will also increase
awarensss and willingness to embrace the transition to the number of electric and hybrid vehicles procured to 30% of focusing on alternate sources of revenue through various value-added services.
electric powertrains. the fleet in 2030. Such efforts are part of the UAE's roadmap to Below are some of the services that are expected to gain more focus in the
achieve net-zero emissions by 2050.
coming years.
Source: expert input, Roland Berger

A. EV battery and charging solutions:

Battery leasing and EV charging are expected to be the key services offered by
dealerships to their EV customers. Battery leasing and battery swapping
We expect two major electrification-related impacts to affect distributors and dealers solutions can be offered by dealers in collaboration with the EV OEMs.
in the Middle East region:
B. Connectivity and smart mobility solutions:
1. Impact of direct sales approach by new-age EV OEMs: As connected vehicles become more common, distributors and dealers expand
Most of the new-age EV OEMs such as Tesla, Nio and Polestar are adopting direct their offerings related to digital apps and solutions. Their portfolio may include
sales to maximize their value chain control. This could pose a threat to the distributors digital services such as driver monitoring (e.g. for younger drivers), predictive
and dealers in the region. However, we expect most EV OEMs to collaborate with maintenance, digital fleet management, concierge services, infotainment,
distributors/dealers in order to maximize penetration in the region and conduct roadside assistance and SOS services. These solutions can typically be priced
efficient operations. with a fixed-plus-variable model and may be offered to both B2C and B2B/fleet
customers.
2. Impact of changes in aftersales business:
Electric vehicles require significantly less maintenance than internal-combustion C. Financial services:
engine (ICE) vehicles. While EVs don't require engine-related servicing, even brake Dealers may also want to look at new financial service offerings to enhance their
pad changes are limited due to the extended part life. In general, EVs are expected revenue pool. This could include full-service leasing services in collaboration
to require ~50% less aftersales than their ICE counterparts. Besides the revenue with financial institutions to offer tailor-made products to the customers. In the
shrinkage, EV maintenance may require dealers to install specific workshop Middle East, the B2C segment of leasing seems currently underexploited:
machineries suited to the technology. More qualified technicians are required to cater dealers may develop full-service leasing models with a mono-brand or multi-
to battery, electric motor and electronics-related requirements. I brand offering, leveraging their used car inventory.

Roland Berger 12 Future of automotive distribution in ME Roland Berger 13 Future of automotive distribution in ME
7/ FINAL CONSIDERATIONS
The trends described in this publication are expected to have a multifold impact
AUTHORS

on the business of dealers and distributors in the Middle East, both in terms of SANTIAGO CASTILLO
their financial performance and the evolution of their product/service portfolio. Senior Partner +971 56 656-9155 santiago.castillo@rolandberger.com

Most of the trends linked to mobility and electrification entail a declining

share of the pie for the distributors and dealers unless concerted efforts are
made to diversify into new products and adopt new business models. ARVIND CJ
Partner +971 54 581-0862 arvind.cj@rolandberger.com
To ensure revenue flows and profitability, dealers and distributors should
intensify their focus on non-traditional sources of revenue (such as value-
added services, subscription/leasing formats and used car platforms) and could
consider diversifying into other businesses, either organically or inorganically. SMRITI PRIYA
Based on the emerging automotive ecosystem in KSA and other markets, Senior Project Manager +971 50 172-6215 smriti.priya@rolandberger.com
opportunities could be found in EV/component manufacturing, mobility
services, battery recycling/repurposing and other emerging areas. J

Investments and M&A activity will be required in the short/medium term to diversify ANDREA CAVALLERI
into new products and adopt new business models. Dealers and distributors should Senior Consultant +971 50 712-7615 andrea.cavalleri@rolandberger.com
prioritize the value chain segments in which they want to play based on the market
potential and the synergies that exist with their current resources.

J / Overview of key trends and their impact on automotive distribution

Key automotive Impact on revenues for Impact on CAPEX/OPEX Impact on steady-state Timeline of
trends distributors/dealers for distributors/dealers profitability the trend

Set-up costs for online

Rise in the usage of Less operating
channel – costs may
digital channels by No major impact costs for digital Short-mid term
optimize with physical
customers stores
store reduction
Formalization of used Increase in CAPEX as
Higher margin from
car channels and Potential rise in used well as associated OPEX
used car business Short-mid term
innovation in business car sales activity for the used vehicle
compared to new cars
models business
Evolution in the car Dependent on whether
Distribution of revenue Rise in margin from
ownership trends – the OEM offers
rise of subscription/
realization over longer ? subscription benefits
financing and Short-mid term
term aftersales packages
other models to dealers
Decrease in aftersales
Decline in high
Rise in vehicle Potential decline in arm's operating costs –
profit yielding Mid-long term
electrification aftersales revenue some CAPEX needed We welcome your questions, comments and suggestions | www.rolandberger.com
aftersales income
to upgrade workshops

Increase in Increase in the associated Relatively higher 03.2023

Rise in one-time/
offerings for value- operating costs for margins from Mid-long term
recurring revenue This publication has been prepared for general guidance only. The reader should not act according to any
added services value-added services value-added services
information provided in this publication without receiving specific professional advice. Roland Berger GmbH
shall not be liable for any damages resulting from any use of the information contained in the publication.
Source: expert input, Roland Berger Impact Increase Neutral impact Decrease © 2023 ROLAND BERGER GMBH. ALL RIGHTS RESERVED.

Roland Berger 14 Future of automotive distribution in ME Roland Berger 15 Future of automotive distribution in ME
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