There’s no question that the transition to EVs will result in big changes to the auto dealership industry. We often hear that auto dealers are afraid that EVs’ lower maintenance requirements will deprive them of a major source of income. That remains to be seen, but it’s worth asking how dealerships that are currently selling EVs are developing and staffing up their EV-capable service operations.
That’s the focus of a new white paper from CDK Global, EV Service: Today and Tomorrow. The company, a provider of data and technology to the automotive and related industries, interviewed some 200 service and dealership leaders, and asked how they’re planning for the transition to EV service.
The interview subjects work at dealerships that either currently service EVs or are preparing to do so in the next two years, so few voices of EV naysayers seem to be represented here. Those who are actually servicing EVs today (as opposed to those with no interest in doing so) don’t seem to be worried that electrification will be the death of dealerships. Some 77% of respondents expect customer retention with the introduction of EV service to remain steady or increase in the future. Another potentially telling statistic: respondents said that roughly 2.5% of their dealerships’ new unit sales were pure EVs, and that 2.4% of their repair order volume came from EVs. So, at least at this early stage, EV drivers would seem to be coming in for service about as often as legacy ICE owners.
What type of work is expected to drive service revenue for EVs? “The number-one issue that’s expected can’t be solved with a wrench,” says CDK. Some 38% percent of respondents said software issues will be the most common service request from customers. Problems with display systems are expected to account for another 18%.
The white paper highlights how many dealers are EV-ready today, the looming training and staffing obstacles, and the need to incentivize EV-related training. For anyone working in auto dealerships and related businesses, EV Service: Today and Tomorrow is worth reading in its entirety.
Source: CDK Global