Executive Summary

Introduction: The global automotive industry is witnessing a significant shift towards e-mobility, driven by environmental concerns, technological advancements, and policy incentives. China, as the world’s largest car market and a major producer of electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs), is leading this trend. However, the after-sales and service sector faces unique challenges in adapting to this shift.

Project Overview: Our team, in collaboration with local partners, developed a comprehensive after-sales strategy tailored for the Chinese e-mobility market. This project aimed to address the specific needs and regulations of the Chinese market, ensuring the safety, quality, and efficiency of EV and PHEV maintenance and repair.

Conclusion: Our project successfully delivered a comprehensive after-sales strategy for the Chinese e-mobility market. It demonstrated our ability to innovate and adapt to the emerging e-mobility sector, providing valuable insights for future developments in the after-sales sector.

Background

The project was initiated as part of the clients' global e-mobility strategy, which aims to offer a wide range of EVs and PHEVs to meet the diverse needs and preferences of customers around the world. The project's objective was to develop a comprehensive and consistent e-mobility after sales concept for China, covering all aspects of the service and repair of EVs and PHEVs, as well as the related infrastructure and logistic.

The project involved multiple stakeholders from the client's organization, including the OEM, the joint ventures, the import organization, and the local retail network. The project also involved external partners, such as suppliers, service providers, and authorities, who had to be consulted and coordinated with throughout the project.

The project was divided into six work packages, each focusing on a specific aspect of the e-mobility after sales concept:

• Service and handling of e-components: This work package aimed to develop a service and handling concept that would ensure the proper and safe maintenance and repair of the e-components, such as the HV battery, the electric motor, the power electronics, and the charging system. The concept included the technical specifications and standards for the e-components, as well as the tools and equipment for the service and handling. The concept also included the quality control and documentation for the service and handling, as well as the warranty and goodwill policies for the e-components.
• Battery handling and logistics: This work package aimed to deal with the complexity and cost of the battery handling and logistics, which involves the importation, transportation, storage, repair, and disposal of the HV battery. The concept included the different options and scenarios for battery importation, such as air or sea transport, and the corresponding documents and procedures required by the customs and the authorities. The concept also included the different options and scenarios for the battery repair, such as battery repair center, flying doctor, or battery repair at dealer, and the corresponding equipment and qualification required by the staff. The concept also included the different options and scenarios for the battery disposal and recycling, such as local or overseas partner, and the corresponding environmental and social impacts.
• Roadside assistance: This work package aimed to develop a roadside assistance concept that would provide fast and reliable service to the customers in case of breakdowns or collisions involving EVs and PHEVs. The concept included the roles and responsibilities of the call center and the roadside assistance service providers, as well as the procedures and equipment for the towing and repair of EVs and PHEVs. The concept also included the different scenarios and solutions for the roadside assistance, such as towing only, roadside repair, or battery replacement, depending on the availability and qualification of the staff and the severity of the problem.
• Body and paint repair: This work package aimed to address the concerns and risks related to the body and paint repair of EVs and PHEVs, which involve the exposure of the HV battery to high temperatures and potential damage. The concept included additional checks and documentation before and after the paint and drying process, to ensure the safety and quality of the battery and avoid costly warranty cases. The concept also included the common outsourcing of the body and paint repair in the Chinese market, and the need to monitor and control the performance of the external service providers.
• Training and staff qualification: This work package aimed to develop a training and qualification concept that would ensure the staff involved in the e-mobility after sales sector had the necessary skills and qualifications to work on HV components and systems. The concept included several levels of training, such as electrically informed person (EIP), high voltage training (HVT), and high voltage electric (HVE), for multiple roles and tasks, such as service advisors, technicians, and battery experts. The concept also included the legal liabilities and penalties for the employer and the employee in case of breaches of statutory duty or accidents.
• Financial implications for after sales: This work package aimed to estimate and evaluate the financial implications of the e-mobility after sales concept on the importer, the dealerships, and the customers. The concept included a calculation tool that could capture the costs and revenues of the different modules and activities of the concept, such as staff training, call center, wall box, warehousing, regular service, accessories, warranty, logistics, and recycling. The concept also included several factors and assumptions that affect the financial implications, such as the volume and mix of EVs and PHEVs, the market and customer characteristics, the regulatory framework, and the competitive environment.

The results gained approval by the project committee and the individual stakeholders, as well as the Chinese entities and dealerships.

Challenges and Solutions

The project faced several challenges, both technical and organizational, that required innovative and flexible solutions. Some of the main challenges and solutions are summarized below:

• Regulatory development framework: The project had to deal with the uncertainty and complexity of the regulatory environment in China, which affects the e-mobility sector in various aspects, such as subsidies, targets, standards, certification, and safety. The project had to monitor and anticipate the regulatory changes and adapt the e-mobility after sales concept accordingly. The project also had to communicate and cooperate with the relevant authorities, such as the Ministry of Industry and Information Technology, the Ministry of Transport, the State Administration of Work Safety, and the Electric Power Bureau, to ensure the compliance and feasibility of the concept.
• Roadside assistance: The project had to develop a roadside assistance concept that was suitable for the e-mobility sector, which has different requirements and challenges than the conventional sector. The project had to define the roles and responsibilities of the call center and the roadside assistance service providers, as well as the procedures and equipment for the towing and repair of EVs and PHEVs. The project also had to consider the different scenarios and solutions for the roadside assistance, such as towing only, roadside repair, or battery replacement, depending on the availability and qualification of the staff and the severity of the problem.
• Battery handling and logistics: The project had to deal with the complexity and cost of the battery handling and logistics, which involve the importation, transportation, storage, repair, and disposal of the HV battery. The project had to consider the different options and scenarios for the battery importation, such as air or sea transport, and the corresponding documents and procedures required by the customs and the authorities. The project also had to consider the different options and scenarios for the battery repair, such as battery repair center, flying doctor, or battery repair at dealer, and the corresponding equipment and qualification required by the staff. The project also had to consider the different options and scenarios for the battery disposal and recycling, such as local or overseas partner, and the corresponding environmental and social impacts.
• Body and paint repair: The project had to address the concerns and risks related to the body and paint repair of EVs and PHEVs, which involve the exposure of the HV battery to high temperatures and potential damage. The project had to develop additional checks and documentation before and after the paint and drying process, to ensure the safety and quality of the battery and avoid costly warranty cases. The project also had to consider the common outsourcing of the body and paint repair in the Chinese market, and the need to monitor and control the performance of the external service providers.
• Training and staff qualification: The project had to ensure that the staff involved in the e-mobility after sales sector had the necessary skills and qualifications to work on HV components and systems, which pose higher risks and require higher standards than conventional vehicles. The project had to develop a training and qualification concept that was aligned with the clients' global standards, as well as the Chinese market's specific regulations and conditions. The project had to design and deliver different levels of training, such as EIP, HVT, and HVE, for different roles and tasks, such as service advisors, technicians, and battery experts. The project also had to deal with the legal liabilities and penalties for the employer and the employee in case of breaches of statutory duty or collisions.
• Financial implications for after sales: The project had to estimate and evaluate the financial implications of the e-mobility after sales concept on the importer, the dealerships, and the customers. The project had to develop a calculation tool that could capture the costs and revenues of the different modules and activities of the concept, such as staff training, call center, wall box, warehousing, regular service, accessories, warranty, logistics, and recycling. The project also had to consider the different factors and assumptions that affect the financial implications, such as the volume and mix of EVs and PHEVs, the market and customer characteristics, the regulatory framework, and the competitive environment.

Conclusion

The e-mobility after sales concept for China was a successful project that delivered a comprehensive and consistent strategy for the service and repair of EVs and PHEVs in the Chinese market. The project showed the clients after sales and parts' teams' ability and commitment to innovate and adapt to the emerging e-mobility sector and meet the diverse and changing needs and expectations of customers and stakeholders. The project also provided valuable insights and lessons learned for the future development and improvement of the e-mobility after sales sector in China and beyond.