Building a Scalable Warranty System for EV Manufacturers

The electric vehicle market is growing rapidly. With the growing demand for electric vehicles, EV manufacturers are increasing production more than ever. This growing demand also raises the volume of warranty claims coming to OEMs. However, EV manufacturers may find managing these claims challenging due to multiple factors.

Unlike IC engines, electric vehicles do not involve complex components. EVs have rather a few broad components, such as a battery and a charging system. Since EV technology is still advancing, the professionals in this sector have limited access to technical information. This makes it essential for EV manufacturers to have a simpler and more streamlined system to manage the incoming warranty claims.

Through this article, we will explore how a scalable warranty management system helps growing EV manufacturers streamline warranty claim processing and minimize warranty costs.

Why is Scalability Important for EV Warranty Management?

Unlike the IC engine manufacturers, which have a widespread dealer network and experienced professionals, the EV manufacturers have quite limited resources. Also, since EV technology is still evolving, the technicians and dealers are insufficiently experienced.

This makes it essential for these EV manufacturers to adopt a warranty management process that is free of complex processing and simple to execute. Also, the system should have capabilities to grow as the manufacturer’s business needs evolve with time, i.e., it is scalable.

How Does a Scalable Warranty System Streamline EV Warranty Management?

A scalable warranty system simplifies the warranty claims management process. It is an efficient and easy-to-use software that grows and expands as the business needs of manufacturers evolve. A scalable warranty management system smoothens the claim process and minimizes vehicle downtime. This helps EV manufacturers and their dealerships improve operational processes and reduce costs.

Below is a step-by-step breakdown of how this system streamlines the EV warranty management:

1. Warranty Definition: As the first step, the manufacturer adds the warranty policy to the system using its user-friendly interface. They define parameters like what is covered under warranty and its duration. They may also add any additional details, such as a grace period on warranty coverage.
2. Stock In: The manufacturer records the product details in the warranty system once the production of the electric vehicle is completed. This is done through an Excel upload or by integration with a business system, such as an ERP system. An efficient warranty management software may facilitate this process even better by generating unique bar/QR codes for identification.
3. Stock Out: This step involves determining which VIN/serial number is supplied to which business partner. The OEM can simply upload the sales data through Excel or integrate a dealer management system. This integration benefits the manufacturer later during warranty returns, helping them track sales through secondary channels.
4. Dealer Claim Process: To file a warranty claim, dealers need to enter the VIN/serial number of the vehicle. They can then select the claim type and add details about the issue. The dealer can support their claims by adding multimedia such as images, PDF documents, and videos.
5. Claim Review: The warranty processor on the OEM’s side receives a notification once the claim is submitted by the dealer. They review the incoming claims and take necessary actions. Based on their findings, the processor can either approve, reject, or ask for additional information. If approved, the credit entry of the claim is updated automatically in the OEM’s database. However, if the processor rejects the claim, a rejection code along with the reason gets documented. This code comes in handy for the OEM when analyzing claim data in the future.

Benefits of a Scalable Warranty System for EV Manufacturers

Implementing a scalable system for warranty management offers several benefits to the EV manufacturers, including:

• Streamlined Operations

An EV warranty management system provides a simpler and structured approach to resolve incoming claims. Streamlined warranty claims processing provides better visibility in the ongoing processes to the EV manufacturers, helping them improve their operational efficiency.

• Cost Efficiency

OEM’s teams can easily manage large claim volumes when the process fr handling claims is streamlined and simple. It reduces unnecessary manual interference and helps manufacturers save on labor costs.

• Fraud Detection

A warranty management system provides a digital platform to the OEMs where they can easily document incoming claims. With centralized access to all the claims information, reviewers can cross-check their authenticity easily. This easy access helps in detecting and preventing fraudulent warranty claims.

• Improved Customer Satisfaction

When the claim processing is easy and quick, the back-office teams save time required for processing claims. With minimal wait time, customers are more satisfied with the OEM’s service.

Conclusion

With a growing demand for electric-operated vehicles globally, manufacturers are producing more and more electric vehicles. However, this growing manufacturing is also triggering a higher volume of warranty claims for the OEMs. Because the EV sector is experiencing transformations every other day, OEMs need a warranty system that grows with their evolving needs.

This makes it crucial to adopt an efficient EV warranty management system that streamlines the claim resolution process. With features as automated claim processing and a scalable framework, this system enables EV manufacturers to diversify their horizons wherever possible. This scalability helps the electric vehicle OEMs in staying ahead in the competitive EV market and driving profitability.