In 2021, global electric vehicle (EV) sales reached nearly 7 million units in 2021, a 108% increase from 2020. According to industry expert Les Silver, the transition is “happening faster than people would have thought 10 years ago”. This significant shift presents an opportunity for service departments to capitalize on a novel set of customers.
How do Service Departments maintain their profitability while servicing more EV?
According to Executive Chairman of Dynatron Software Les Silver, the opportunity to maintain and even increase profitability is significant. It’s no secret that a major appeal of electric vehicles is a lower cost of ownership. However, in the absence of repair, regularly scheduled maintenance is where profitability is maintained.
While your service department’s work mix may be different when servicing electric vehicles, there is still a huge opportunity to perform preventative maintenance. As previously mentioned, for example, the battery performance and range is a key area needing your technician’s attention. Lithium-ion batteries can degrade over time, depleting power reserves and diminishing performance. The type of maintenance that keeps batteries at peak performance includes flushing coolant, temperature checks, and more. Regenerative braking (a feature of electric vehicles) can also impact battery range, so maintaining the brake components is also important.
How to capture EV customers in your Service Drive
The time of waiting to see what happens with the electric vehicle market is over. The future is here and you’ll need to begin capturing EV owners, but how should you do it?
Sales and Service Working Together
While electric vehicles may have initial upfront costs, the total cost of ownership is lower than a gas vehicle, making it an attractive option for potential buyers. According to AAA, EV owners save roughly $330 annually on maintenance costs compared to owning a gas-powered vehicle. Because of this, it is critical that sales teams work together with the service department to properly educate customers on the importance of preventative maintenance at the time of a sale. Doing so will prime customers with the understanding of what is required to keep their EV running efficiently – the reason they made the purchase decision to begin with.
At the time of a sale, dealers will be able to outline the importance of maintenance, especially regarding battery performance. When the sales team properly informs customers of the requirements that come with their new purchase, which then encourages them to return when the time for preventative maintenance comes.
Establish Your Dealership as an Expert
Electric vehicles require different maintenance that first-time EV owners may not be aware of. That’s where your dealership comes in as the expert on the vehicle from your specific manufacturer. This is also a significant edge over aftermarket shops simply don’t have when servicing multiple makes and models. As a result, there is less of an opportunity to lose EV owners to these third party aftermarket competitors.
Another notable advantage is the manufacturer-provided training and tools that are also essential to establishing your dealership as well qualified to service electric vehicles.
The opportunity is there and it is significant, it’s up to you to fully capture it!
Dynatron can help!
Our experts are no strangers to the rise in electric vehicles and helping our customers navigate the changing landscape. You don’t have to figure it out on your own. We have the solutions to help you optimize your work mix, maximize your CP ELR, and ensure pricing compliance amongst your technicians. Get in touch with us to learn more!