A New Dawn for the Heavy Truck Dealer Network Opportunities related to increasing electrification and direct sales

Abstract

For intermediaries to stay relevant in distribution networks, they need to adapt to changing conditions. Currently, heavy-duty truck manufacturers have committed to increase their offering of electric vehicles to minimise the environmental impact of transport. At the same time, firms are developing their distribution structures and strategies with the aim of fulfilling customer requirements and reducing costs, which implies utilising direct sales. The aim of this master’s thesis is to investigate future business opportunities for an intermediary in a distribution network of heavy-duty trucks, in a scenario with increased electrification and direct sales. This master’s thesis is based on a single case study in collaboration with Volvo Group at Group Trucks Technology, focusing on the internal and private dealers of Volvo Trucks’ heavy-duty truck dealer network. To fulfil the aim of this thesis and address the research problem dealt with in this study, several issues have been investigated. The current operations of the dealers have been studied, with the aim of identifying core activities and resources to outline the current dealer roles. Taking the current dealer roles and operations as a point of departure when analysing the impact of increased electrification and direct sales, implications for the future dealer role could be outlined. Increased electrification and direct sales are reshaping the business environment for the dealers, driving significant changes in current activities, resources, and roles. Increased electrification and direct sales imply a reduction in workshop service and sales opportunities, alongside the increased importance of supporting customers in the transition to electric vehicles. Continuing to be a main customer contact point, the future dealer role will be more complex, moving towards an advisory role emphasising the need to provide the customers with comprehensive solutions. The study shows that the dealer roles are being redefined rather than eliminated. For the dealers, this implies that they need to consider their roles to ensure that they will continue to be relevant actors that create value in the distribution network. Future business opportunities for the dealers are presented in response to the impact of increased electrification and direct sales.