The Electric Vehicle Market is Growing: Are You Ready?

For consumers facing sticker shock at the pump, it may be time to consider shifting to a fuel-efficient, low-emission electric vehicle. The electric vehicle market is growing exponentially. It was originally valued at just over $163 billion in 2020, but it’s expected to top $823 billion by 2030. How will this growing industry affect dealerships? 

Electric Vehicle Market Growth is a Good Thing…Right?

Ready or not, the electric vehicle revolution is underway and showing no signs of pumping the brakes. Successful dealerships will learn to embrace the new face of vehicles, and they’ll ultimately benefit from doing so. Here are a few ways to reap the rewards of this market growth.

Bring Customers to Your Lots

As of now, there hasn’t been a big push to market electric cars. Take your advertising to the next level by featuring these vehicles alongside your traditional models. EV buyers are still looking for the usual vehicle classes, such as SUVs and sedans, but with the added benefits of the electric models. Tax credits, decreased emissions, and other incentives should be the central selling points of your EV advertising campaigns.

Place EVs Front and Center

Place your EVs in a prominent spot on the lot, not hidden in a far corner. Customers looking for them will find them easily, and those who may be undecided can see and compare them to traditional models. Make sure your salespeople are knowledgeable and ready to answer questions about the EVs on your lot.

Keep Electric Vehicles Test-Drive Ready

For prospective customers, seeing is believing. They may not be aware of the performance capability, storage capacity, or roominess of today’s EVs. Don’t forget to keep some models fully charged and ready to be taken for a spin.

Start an Electric Vehicle Community 

Make your dealership the hub of an electric vehicle community. Offer test drives, free charging stations, discussions with real-life owners, hands-on tutorials for charging and other perceived EV concerns, and opportunities for environmentalists to speak. You may consider doing this every month or so, and even include snacks and beverages. Get a radio or local TV station on board, and you’ll increase your sales opportunities even more.

The Cons of EVs and Dealerships

The growth of the electric vehicle market does have a few disadvantages for lots. A successful dealership will need to learn to move past these to thrive. Some of them include:

Wary Customers

It’s human nature to turn to the known, and convincing your customers to trust an EV isn’t going to be  easy. They may be misinformed on the basics of EVs, and might be afraid of everything from being stranded on the side of the road with a dead battery to thinking they’ll need to replace the battery within years. 

EVs Require Fewer Repairs

One of the bigger draws for customers is that electric vehicles require less maintenance than traditional cars. Braking systems are regenerative, and there is no need for spark plugs or oil changes. Additionally, fewer moving parts mean fewer opportunities for breakage.

Still, service technicians will need to be certified in new skills to service EVs and your dealership will need to invest in new servicing equipment including specialized tools and lifts.

Smaller Profit Margins for Dealerships

The biggest cost factor with EVs is the battery. Prices on these batteries are up, and the final price tag will depend on what they’re made of and how long they’ll last. Meanwhile, some manufacturers, like GM, have warned dealerships to avoid markups or face losing their contracts.

Bay Motor Finance is Your Partner for the EV Revolution

Your customers may be choosing between an electric vehicle or a traditional fuel-powered one, but choosing their financing option is easy. Partner with Bay Motor Finance to see why dealer-assisted financing is the best way to streamline your customer’s purchase.