Scaling Smart: Building a Cost-Efficient Aftersales Network for a New EV Brand in China

A blueprint for how a new EV brand built a full-service ecosystem from scratch—fast, lean, and ready to scale in the world’s most competitive market.

Launching a new automotive brand in China is never just about delivering a compelling product. In the world’s most competitive and rapidly evolving EV market, customer expectations extend far beyond the vehicle itself. For one ambitious joint venture between a European OEM and a local partner, the challenge was not only to bring a car to market but to develop a comprehensive ownership ecosystem from day one. At the heart of that ecosystem sat an aftersales experience designed to scale quickly, stay lean, and meet the expectations of a cost-sensitive customer base.

Our team was tasked with developing this aftersales ecosystem from the ground up. This included everything from network design, cost modeling, service formats, battery logistics, technician training, digital systems integration, customer service processes, and localized regulatory alignment. The following outlines how this strategy was built and implemented in one of the most complex EV markets in the world.

The project began with a clear goal: gain speed without sacrificing quality. During the launch and ramp-up phases, the strategy focused on leveraging an existing nationwide service network. By doing so, the joint venture could avoid large capital expenditures and immediately offer a reliable service footprint to early customers.
This approach eliminated incremental costs for tooling and technician onboarding. Existing service bays were allocated based on projected volume, and operational overhead was absorbed by the existing partner network.

This approach provided a 12- to 18-month advantage over competitors that were still establishing their physical footprint.

Once the vehicle reached market traction and sales volume scaled, the aftersales strategy shifted toward a customized service network built specifically for the target demographic. The design featured two new retail formats:

• Outlets were light, modular workshops focused on high-throughput operations. These offered basic maintenance and component services, such as brake repair, oil changes, and fluid refills.
• Centers were larger regional hubs providing complex repair services, technical oversight, and parts logistics support. Compared to traditional service centers, these formats offered a leaner cost structure while prioritizing essential services most relevant to EV customers.

The network was planned to ensure no customer would be more than 50 kilometers from a service point. Capacity planning was based on 2.5 to 3 service visits per vehicle per year. Service demand was forecast by modeling customer loyalty erosion over a four-year lifecycle, helping define realistic throughput, revenue, and margin targets.

"We built a service map, not just a network—designed around actual driving patterns and urban density."

To expand efficiently and sustainably, the network model relied on regional investor partnerships. This approach transferred capital burden away from the OEM and enabled faster geographic expansion. In return, investors operated outlets under strict standards and performance benchmarks.

Each partner committed to delivering services using modular service packages, maintaining certification in high-voltage repair training, and integrating operations into centralized parts ordering and customer management systems. Oversight mechanisms included regular audits, standardized KPIs, and incentive structures based on service quality and customer satisfaction.

A structured, job-profile-based training program ensured technician readiness and regulatory compliance. The framework distinguished between High Voltage Technicians (HVT) and High Voltage Experts (HVE), aligning with China's licensing and safety requirements.

All training was delivered by OEM-certified trainers, who also led a Train-the-Trainer cascade to build local instructional capacity. This ensured rapid network rollout without compromising technical quality.

"EVs changed everything—we couldn’t rely on traditional technician paths anymore."

To support aftersales operations, the team simulated four different logistics strategies ranging from full integration with existing networks to building an independent infrastructure. These scenarios included:

1. Full use of an existing logistics network
2. Third-party logistics providers
3. A dedicated logistics company
4. A hybrid model.

Ultimately, the hybrid strategy was selected that used centralized warehousing during the ramp-up phase, followed by regional decentralization as the volume grew.

Stocking policies followed an ABC classification, with high-frequency parts stored closer to outlets. A weekly delivery cycle was established, with emergency protocols for high-priority parts. Dangerous Goods compliance was built into all battery logistics, covering transport, warehousing, and handling.

The service design incorporated the unique needs of electric vehicles from the outset. Battery condition was assessed at every service visit using diagnostic protocols. Standard operating procedures were created for repair versus replacement scenarios.

Forward planning included early development of a battery recycling and repurposing program, aligned with evolving Chinese environmental regulations. This proactive stance helped avoid future regulatory risk while positioning the brand as a responsible operator.

"We embedded battery lifecycle thinking into every touchpoint—from logistics to legal."

A comprehensive business model was developed to track costs, revenue, and margin across each touchpoint of the service chain. Forecasts covered:

• Parts sales over the vehicle lifecycle
• Warranty cost assumptions
• Profitability by service format

These assumptions guided investor conversations, outlet design, and retail pricing, ensuring that both cost and revenue sides of the equation aligned for early break-even. Each scenario was supported by detailed volume curves and benchmark studies.

The experience revealed three critical insights for global players entering China or similarly complex EV markets:
First, leveraging existing infrastructure accelerates rollout without compromising scale. For example, using pre-existing workshops eliminated excessive need in setup costs. Second, modular service formats allow flexibility in managing service depth and cost-to-serve across different customer segments. This was key in optimizing throughput without inflating headcount. Third, local investor partnerships, when paired with strict SOPs and oversight, enable rapid expansion while minimizing capital expenditure. Our investor-operated outlets were operational within months, sooner than internal CAPEX-driven models.

In EV markets like China, service is no longer a support function—it is a defining brand experience. This project demonstrates how a strategically planned, cost-efficient, and scalable aftersales system can become a core asset for a new automotive brand.

"Aftersales used to be an afterthought. Today, it’s the backbone of customer loyalty."