Lisbon, Oct. 1, 2026 (Lusa) - Three executives from car retail companies said on Thursday that the sector will have to adapt to the rise of electric vehicles, which require fewer mechanical repairs.

During a panel discussion on the automotive retail sector at the ACAP Auto'26 Forum, taking place in Lisbon and organised by the Portuguese Automobile Association (ACAP), Santogal's chief executive, Eduardo Lupi, described the after-sales market as «more enigmatic than it seems».

«It is a much more stable sector than sales, and the evolution is much more gradual; things are evolving,» he said, noting that, a few years ago, «everyone predicted that bodywork and paintwork would disappear because insurance companies had their own workshops» and because advanced braking control systems would help cars avoid collisions.

«We were going to lose the major bodywork and paint repairs we used to carry out, and bodywork and paintwork were going to disappear – but none of that happened, which is, in fact, strange and surprising,» he added.

Eduardo Lupi predicted that the outlook for car repairs is now also evolving.

«A lot of the money we earn comes from servicing cars; we will see fewer servicing jobs, and so our after-sales business will change significantly,» he said, adding that electric cars do not require oil changes or filter replacements.

Similarly, Paulo Araújo, CEO of Caetano Retail for Portugal and Spain, pointed out that the bodywork and paintwork side of the business is secure; the mechanical side simply presents the greatest opportunity for transformation.

«The mechanical side of the business is set to change radically; the introduction of electric vehicles is significantly increasing the complexity of that business,» said the Caetano Retail executive.

Paulo Araújo added that electrification will lead «to a reduction in the need for servicing at dealerships», where customer loyalty over a car's lifetime tends to be modest.

«We are very good at retaining cars during the first four or five years of their life, but after that we tend to see a slight reduction in servicing for these cars at our dealerships,» he said.

In this regard, he emphasised the importance of increasing customer loyalty for older cars, something that can be achieved by changing the business model.

«We may have new lines of business, lines that we perhaps leave to others to handle, but there is no reason why dealerships shouldn't be the ones to develop them,» such as tyres or windscreen replacement.

Paulo Araújo also noted that, although the cost per repair for electric vehicles is lower than for combustion-engine cars, the latter tend to generate greater customer loyalty amongst dealerships.

Eduardo Lupi also highlighted recent problems with vehicles arriving from importers «full of service campaigns, full of problems,» which importers had to send to dealerships' workshops.

«These days, for some manufacturers, the importer accounts for 40% of dealers' official capacity (…) and how long is this going to last? Will they continue to produce cars that, as soon as they arrive or after just two months, immediately require three or four repairs?», he asked, highlighting the strain caused by these fluctuations.

«After-sales is indeed a sector that needs careful attention, and we must encourage importers in particular to pay us a reasonable hourly rate, because it makes perfect sense to us that importers should hand us the most complicated problems to resolve,» he insisted.

Also on the panel, André Figueiredo, director of Rodda (formerly Automóveis do Mondego), addressed the issue of car imports, which, if left unchecked, will lead to Portugal importing «Europe's junk».

«All private customers look for bargains on cars they cannot afford to buy new,» he said, pointing out that if Portugal manages to «halt imports», it could reach Spain's levels of new car consumption.

At the opening of the event, ACAP's president, Sérgio Ribeiro, said it was important to look at the growing influx of imported second-hand cars «and the difference in tax treatment» between these vehicles and new cars sold in Portugal.

«The current framework allows for significant reductions in vehicle registration tax (ISV) on used cars from other member states, creating competitive conditions that do not always ensure neutrality between the different ways of accessing the market,» he pointed out.

In his speech, Sérgio Ribeiro also gave a positive assessment of electrification, noting that, excluding the ‘rent-a-car' sector, Portugal «ranks in the top five in Europe in terms of sales of 100% electric vehicles».

Nevertheless, he highlighted the ageing vehicle fleet, which needs renewal for environmental and road safety reasons, and suggested reviewing the sector's tax regime.

JO/ADB // ADB.

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