The demand for electric vehicles has been growing and will impact every department within the dealership. In particular, the service department.
Electric vehicles have fewer mechanical components, meaning fewer after-sales service visits. While consumers will undoubtedly be faced with problems with maintenance, electric vehicles can significantly reduce the number of people who use servicing.
Overview Of Electric Vehicles
All-electric vehicles (commonly called EVs (also known as BEVs) use a battery that runs the engines instead of gasoline. The battery-powered vehicles need a charger that will “fuel” a car in just 30 minutes or as long as 12 hours, contingent upon the battery’s capacity.
Not just Tesla has increased the demand for vehicles that emit no emissions. The market for electric cars has grown significantly due to consumer demand, efforts toward sustainable development, rising gas prices, and a pandemic that has spread globally–with a tremendous growth rate in the last two years.
First, the pandemic increased electric vehicle sales despite the lack of inventory. Try boosting your sales by updating your skills with an auto sales training program.
And now, as gas prices rise, the EV market is expanding. In the end, the market for electric vehicles worldwide was estimated at $6.6 billion as of 2021, and the EV market is predicted to grow to 354 billion in 2028.
Based on Google Data, the number of mobile searches related to EVs has increased by 85% over the last two years. Furthermore, with the change in government policy to have 50 percent of all car sales to electric vehicles by 2030, it is clear that electric vehicles will be in the future!
What Does The Mean For The Service Department
Electric vehicles don’t come with as many mechanical components as a gasoline engine requires. With no belts, oil, and a majority of the usual “freebies” (that dealerships offer customers to make them go in for maintenance), electric vehicles do away with the requirement to have customers return often.
Electric vehicles have less use and wear per mile than ICE (internal combustion engine) vehicles. While the maintenance of EVs needs more complicated care. The complexities of these services could lead to more billable service hours, which could raise the revenue per hour.
However, electric vehicles need less maintenance and have fewer moving parts, which means that services will see lower pedestrian traffic. Dealerships will also have to invest in maintenance education for electric vehicles and purchase high-voltage equipment.
This change will also cause difficulties for the front at the dealer. Salespersons will need to refresh their knowledge about electric vehicles. Because EVs are more expensive, salespeople must modify their sales methods.
The future is bright in the service department, however. The maintenance of electric vehicles will consist of brakes, tire suspension, steering, and electrical services.
What You Can Do To Prepare
Dealerships across the country have already begun to adjust to the rapid growth of electric vehicles.
The old dog cannot be taught new tricks. However, a lot of old-fashioned dealerships have taken on the task!
Don’t Despair, Prepare
Put in the time and effort to instruct in service based on electric vehicles right now, so your dealership won’t be caught up when it comes time to upgrade. It’s simpler to gradually introduce your employees to new knowledge instead of putting them in the middle of the action.
A few hours a week spent discussing EVs and how your business will develop in the future is a good step toward a positive direction. It’s not simple to bring everyone to be on the same page. However, you’ll be thankful in the future.
Pivot to Accessories
Dealerships heavily rely on service advisors to keep customers in the loop. So, you’ll need to be smart about what you provide, including four free oil changes, when you make new car purchases.
A good alternative is to collaborate with sales and parts departments to offer accessories for customers who shop in stores and online to install them. Increase your sales with a car sales training online course.
This can generate more income for the dealership. Supplements are not going to disappear. Both electric and ICE vehicles will come with accessories that customers can purchase.
Get the Right Tools
Electric vehicles are notoriously costly. They’re not just the cars themselves; all the equipment needed to maintain them is also expensive.
If your business isn’t in the position to purchase costly high-voltage devices, you should start allocating a portion of your budget to the items that will soon become commonplace.
Research the cost of establishing an EV-friendly service department to ensure your business can stay ahead of its competitors.
Stay Ahead of the Curve
Be informed about current EV market developments and progress to ensure that you’re not the last to be announced.
Examine your competitors and other dealerships in your vicinity–for instance, are they selling EVs, do they have the right tools, and what are their strategies to sell electric cars.
The worst-case scenario is that your dealership could be the most intelligent kid, and that’s never bad!