Keyloop says that automotive retailers are rethinking how they generate profitability, build customer loyalty and deliver long-term value.
And, as electrification accelerates and traditional revenue streams come under pressure, technology is emerging as a critical enabler, helping retailers adapt to changing economics while meeting growing consumer expectations, Keyloop adds.
At Fusion Live 2026, Keyloop’s flagship industry event, it revealed that service and repair revenue per vehicle is expected to decline by an estimated 30 to 45 percent per vehicle because electric vehicles require less routine maintenance. Additionally, parts sales per vehicle are projected to decrease by 20 to 30 percent, reducing another traditional source of dealership income. These trends challenge dealers and automotive retailers to identify new opportunities for growth and operational efficiency.
” The industry has undergone a huge fundamental shift. It’s almost unrecognisable from 50 years ago and undergoing another phase of rapid evolution,” said Tim Smith, Chief Strategy Officer, Keyloop. “Traditional aftersales revenues that have long underpinned dealership profitability have changed, requiring retailers to adopt new approaches to customer engagement, data utilisation and business performance.”
It’s not just evolving revenue streams that are impacting auto retailers. Changing customer behaviour also plays an important role, with modern consumers increasingly expecting seamless, personalised and connected experiences.
“Retailers are facing pressure from both sides of the business. Traditional revenue streams are becoming less predictable, while customers expect faster, more personalised and more connected experiences at every touchpoint,” said Harvey, Chief Revenue Officer, Keyloop. ” Organisations must pursue digital transformation, not for its own sake, but to deliver tangible ROI through more efficient operations and an improved customer journey.”
Research conducted by Keyloop showed that 71 percent of consumers are willing to spend more on aftersales services if they receive a better customer experience. Thus, customer experience is becoming a major differentiator as retailers compete for loyalty and lifetime value.
These changes have led dealerships to move away from disconnected systems and siloed operations toward fully connected digital ecosystems. By integrating customer, vehicle and operational data across the entire retail process, businesses can gain greater visibility, improve decision-making and create more seamless customer experiences. Technology is evolving from a back-office support function into a strategic driver of long-term growth and profitability. This includes identifying new revenue opportunities, increasing workshop utilisation, and improving customer retention through personalised communication.
“Automotive retailers today need technology that doesn’t just solve individual challenges but connects every part of the business,” said Adrian Nash, Chief Product Officer, Keyloop. “Fusion brings together solutions across sales, aftersales and dealer operations – into a single platform. By unifying data, workflows and AI-driven insights, dealerships can make faster data-backed decisions, deliver better customer experiences, improve operational efficiency, and unlock new opportunities for growth in an increasingly competitive market.”
For Keyloop, the Middle East has played a central role in the transformation journey of automotive retail. With more than two decades of presence in the region, the company has built long-standing partnerships with automotive retailers while steadily expanding its local capabilities and customer footprint. In recent years, the regional business has experienced significant growth, including the expansion of its Middle East and APAC teams and the growth of its customer base representing almost 40 percent of automotive retailers in the region.
“Our success in the Middle East has always been built on strong customer relationships and a deep understanding of the challenges facing automotive retailers,” said Monzer Tohme, Managing Director, MEA & APAC, Keyloop. “Over the last two decades, we’ve grown alongside our customers by expanding our capabilities, strengthening our support model and helping retailers embrace digital transformation.”
As automotive retail continues to evolve in the Middle East and beyond, Keyloop believes that retailers’ success will increasingly depend on the ability to connect customer experience, operational efficiency and profitability through technology. AI-driven, automated and unified data platforms such as Fusion will help retailers respond to changing business models while uncovering new opportunities for growth. Embracing connected, customer-centric approaches will put retailers in the best position to navigate industry disruption, build resilience and create long-term value in an increasingly digital automotive marketplace.
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