Auto dealers now report holding 92 days of electric vehicle (EV) inventory compared to 54 days of traditional gas or diesel vehicles on their lots. This new dynamic coincides with lower pricing for EVs, with several new markets offering various price points that make the move to an EV an intriguing choice for buyers.
While the EV revolution continues forward as consumers have more options and attractive pricing, dealers and infrastructure providers must adapt and overcome various challenges. Cars aren't the only industry moving towards electrification either. For example, startups like Volteq are working on the transition to turn the construction equipment industry all-electric. As electric vehicles continue to replace their gas-powered counterparts, here's how car dealerships are dealing with the transition.
Adjusting Inventory And Marketing Management
Auto dealerships traditionally rely on a large inventory of gasoline-powered vehicles to meet diverse customer preferences. With the rise of EVs, dealerships must adapt their inventory management strategies. They need to develop expertise in assessing market demand accurately, ordering the right mix of EV models and staying abreast of rapidly evolving technology.
Understanding The Infrastructure
One of the primary concerns surrounding EV adoption is the availability and accessibility of charging infrastructure. Dealers that want to best manage their EV inventory should gauge the local progress for charging infrastructure, which can encourage broader EV adoption in the dealer's area. Dealerships can collaborate with charging network providers and government entities to ensure an adequate charging infrastructure is in place. By investing in charging stations on their premises, dealerships can alleviate range anxiety and demonstrate their commitment to supporting EVs while encouraging drivers to visit the dealership.
Staff Training
EVs come with varying charging requirements, ranges and new types of features. To sell EVs dealership sales teams need a thorough understanding of their benefits and how their EVs stand out from comparable vehicles. From explaining charging options to addressing range-related queries, sales representatives must educate potential buyers. Dealerships should invest in training programs to enhance the EV expertise of their salesforce as they can no longer rely on the "novelty factor" to drive sales.
Expanding Customer Education
While the popularity of EVs is on the rise, many consumers still have reservations because of misconceptions or lack of knowledge. They might worry about range, charging costs and installation and rising electricity costs. Auto dealerships have an essential role in educating customers about the benefits and realities of electric vehicles. By offering test drives, organizing EV workshops and providing educational materials, dealerships can bridge the information gap and empower customers to make informed decisions.
Service And Maintenance
The unique technical aspects of EVs necessitate specialized training for service technicians at auto dealerships. From battery diagnostics to software updates, dealerships must invest in the necessary tools and training to offer quality service for EVs. There are also risks with working on EVs improperly, including potentially fatal electric shocks and the dangers of mishandling or opening batteries. Improving EV maintenance capabilities is also good business. Ensuring a seamless ownership experience will contribute to customer satisfaction and long-term loyalty, helping dealerships fully transition to EV sales.
While these challenges present significant hurdles for auto dealerships, they also create opportunities for growth and innovation. By embracing the transition to electric vehicles and proactively addressing these obstacles, dealerships can position themselves as leaders in the evolving automotive landscape.