Posted by Who’s Winning & Why
Both bootstrapped EV OEMs & Dealers I spoke to said – VC backed startups are spoiling the market.
I decided to dig deep. If you are one of such players – read on. I have seen both good & ugly sides of corporates & VC sides as a founder. I share reality – which I hope will be of benefit to EV OEMs & Automotive Dealers – both EV & non-EV.
If I have to sum up – VCs spoil & skew market, but that’s only sometimes, some years. Most of the times – there are things traditional businesses can learn from Startups & Startups can learn from Dealers, Bootstrapped EV OEMs
Are VC-Backed Startups Spoiling the Market? EV OEMs & Dealers wonder
Above question buzzes in the minds of EV OEMs, Dealers. Eg founder of a EV OEM asked this. This is a valid question. I have seen my customers asking – “How does that tiny startup aged 3-5yrs is doing crores of sales?” Is it only VC money being burnt?
Let me tell you real case study. We talked to VC Backed startups & studied some of key market leaders in EV. These are star players. Are they just burning cash? Let me tell you what happened.
We validated that if you enquire – Within 10 minutes – you get call from OEM team, then 10 minutes later call from Dealer. After 2 Days a follow-up from OEM team.
Let me be honest. We are dealing with lots of EV OEMs, Automotive dealers. Ask them – They will accept customer follow ups & interactions is a big issue. Customer isn’t followed up for several days.
I evaluated this for our company & the EV OEM, Dealers that we are dealing with. I found that it needs a mix of Sales team discipline, Capital & Tech.
While it’s easier to say VC spoil the market. Which happens at certain times. Eg. in some years – VCs have a lots of cash which they can’t use. So they burn, give discounts. But that happens in some rare years, not always.
OEM & DEALER Model has changed – Says EV eco-system leader
Mr. Vikas Gupta, founder of Sampoorn EV has seen inside out of EV system. He says – “Customer & Dealers loyalty is no longer there. It’s cut throat competition, so many choices. That a Dealer or Retail customer can switch brand even for 500rs discount”.
Vikas emphasizes customer centricity. “Give control back to customer. Give him choices than pushy sales, be transparent on all channels – off line & digital”
Tech & Human build Sales Team Excellence
I evaluated our own startup – where are delays in customer interactions. I found that though we are very heavy on tech – human touch is needed at many points to close deal. We also put no touch self serve model, where customer purchases by themselves. But it doesn’t work for all customer segments.
Plus, I realized for us & many of OEMs & even dealers – the capex can become high to setup a team or hire a call center.
Multi-Channel Strategy – What’s the Right Mix for OEMs?
We talked to Mr. Chintamani Sardesai, a veteran in EV & Co-Founder, ElektrikExpress.
Tech-Driven Distribution Models for EV OEMs & Dealers – Says EV Veteran
Mr. Chintamani emphasis right mix of Tech, humans & various channel strategies.
“Yes, aggregator deals give volumes. But they don’t build your brand”. Relying solely on aggregators (Swiggy, Zomato, Zepto, Zypp etc.) creates volume but not brand value. Aggregators can control margins, visibility, and fleet terms. OEMs must balance this”
He says use mix of
✅Aggregator partnerships
✅ Own digital sales engine
✅ Franchise-led hyperlocal experience hubs
✅ Strategic B2B channels (resorts, schools, logistics)
Think OEM + Decathlon + D2C = resilient brand moat – He simplifies.
More, timely & transparent Customer Interactions = More Sales
Today customer is impatient, he/she moves on to next brand in minutes, there’s lower brand loyalty today.
GenZ trusts tech & wants to interact with tech first
I talked to GenZ first time buyers & also the second time buyers about their experience.
First time buyers say – “They don’t trust directly going to dealer. They wish to do their own research as a smart salesman can push them to sell higher value”
In-showroom experience can lose Sales & Service or both – Say Buyers
I also talked to Anuraag – who builds Tech systems for large Automotive enterprise companies & is purchasing 2nd car.
“I am quite aware of Automotive AI & tech trends around the world. So when I went to dealer in Pune to purchase my own car, my mind also observes minute details. My customer experience in pre-sales was pathetic…so much that – I will never take Service from the dealer. Imagine – 1000s of customers visiting dealer, not satisfied…without tech – dealers’ management or staff have no way to know what to improve”
I talked to CEOs of dealers – they say – “Customer puts our number as Car Sales or even Spam when we call them for service appointments. If they don’t talk to our team – How would I know what’s the problem”
Capital follows the efficient OEMs & Dealers – Says M&A expert
Efficiency gets capital -> Capital gives you more power to be more efficient & do more sales. It’s not other way around.
Mr. Laxmikant, who has done multi crore deals acquisition deals through his firm Termsheet Capital & has worked extensively in China & India in Automotive says –
“Pure EV, auto tech, and firms with strong AI/autonomous platforms command premium valuations, unlike traditional automakers.”
Tech + Human + Capital = Sales Engine
In Summary, an OEM & dealers need to put customer & customer interactions at heart of it. Tech & AI can make it better. The right mix depends on the availability of capital.
Try to keep it capex light, multi channel. The crux remains same – Customer is god & Customer interactions are worship. Those should be at center to increase sales.
I will be happy to connect with you, learn & share – if you are in same field or observing this problem.
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