In the automotive industry, profitability often lies beyond the showroom floor. While vehicle sales drive volumes, it is the aftermarket segment that contributes up to 40–50% of OEM profits. As customer expectations evolve and digital platforms disrupt traditional service models, automakers are racing to expand their dealer networks, digital parts channels, and bundled service offerings.
But expansion does not always guarantee profitability. Many networks face rising logistics costs, inventory inefficiencies, and inconsistent dealer ROI, making financial discipline more critical than ever. To ensure that growth strategies actually enhance margins, companies need clear visibility into how their aftermarket operations compare against industry leaders.
This is where aftermarket financial benchmarking becomes vital. By evaluating margins, cost structures, and ROI across networks, automakers can identify which channels deliver sustainable growth, optimize investments, and align expansion strategies with long-term profitability goals.
Nexdigm’s Aftermarket Financial Benchmarking Approach
At Nexdigm, we help automotive players transform their aftermarket operations into profit centers by aligning expansion strategies with ROI benchmarks. Our financial benchmarking framework is designed to bring clarity, discipline, and competitiveness to the aftermarket ecosystem.
- KPI & Margin Benchmarking: We evaluate gross margins, ROI per dealer outlet, service profitability, and cost-per-part sold, ensuring transparency across the network.
- Cost Structure Analysis: Our studies benchmark inventory carrying costs, logistics overhead, labor expenses, and warranty claim payouts, identifying areas of leakage and inefficiency.
- Dealer & Network ROI Assessment: We compare outlet-level performance across regions, highlighting high-performing dealers and pinpointing underperforming ones to realign investments.
- Digital & Subscription Model Benchmarking: We assess the financial viability of emerging models such as e-commerce spare parts platforms, predictive maintenance subscriptions, and bundled service packages.
- Actionable Recommendations: Every engagement concludes with ROI-focused strategies for network optimization, cost rationalization, and sustainable aftermarket growth.
Through this structured approach, Nexdigm enables OEMs and suppliers to make smarter expansion decisions backed by financial discipline.
Strategic Value for Automotive Clients
By applying aftermarket financial benchmarking, OEMs and suppliers can move beyond volume-driven expansion to profit-focused growth. With Nexdigm’s approach, clients gain:
- Profitability Visibility: Clear insights into which aftermarket channels deliver the highest margins.
- ROI-Driven Expansion: Dealer and network growth aligned with realistic payback periods and ROI expectations, ensuring sustainable financial outcomes.
- Cost Control & Efficiency: Reduced inefficiencies in inventory management, logistics costs, labor expenses, and warranty claims, protecting profitability.
- Competitive Advantage: Understanding how peers structure their aftermarket revenue models, from digital-first spare parts sales to predictive maintenance offerings, helps sharpen strategies.
- Long-Term Sustainability: A stronger balance between network expansion and financial resilience, ensuring growth is scalable without eroding margins.
In short, financial benchmarking transforms aftermarket operations into a strategic lever for consistent profitability and brand strength.
To take the next step, simply visit our Request a Consultation page and share your requirements with us.
Harsh Mittal
+91-8422857704