The Market is Electric: What Dealers Can Do to Capitalize on Explosive Electric Car Growth

dmccarty@connecteddealerservices.com Blog

Electric car market growth has been on the rise over the course of the last decade. Recent reports anticipate that the sale of electric vehicles (EVs) will dramatically accelerate in 2022, increasing about 75%. Some are even referring to this sudden rise as the EV Boom. 

Consumers need dealers now more than ever. Recent reports found that nearly half of today’s U.S. adults are likely to purchase an electric vehicle in the next decade. With all this excitement around the future of electric, dealers will have to act accordingly so they can profit from the EV customers of the future. In this blog, we’ll explore some of the ways dealers can prepare for this anticipated market shift.

Informative Websites and Educated Staff

It’s no surprise that many car buyers start their journey online and browse multiple websites before they are ready to commit to a dealership visit. However, a recent study with secret shoppers found that many dealership websites lacked EV-specific information. This same study also found that many dealers could not adequately answer EV-related questions. 

One of the best ways to accommodate electric car market growth is to make sure that your website has a considerable amount of EV information and that you’re well-versed in major EV features. Especially since the number of consumers that have not yet driven an EV but are interested in purchasing one is increasing. These consumers will need to rely on a knowledgeable dealer to guide them, websites and 1-800 numbers will not always cut it. 

The Possibility to “Try Before You Buy”

The COVID-19 pandemic has created mass deficiencies within the car industry which has led to major production delays. The EV market is no different. OEM’s did an incredible job of creating excitement and generating consumer demand for EVs, but pandemic-related delays resulted in major supply chain shortages.

This lack of inventory means that some dealers don’t even have an EV on their lot to test drive. This poses a challenge since the “try before you buy” approach is especially important for new EV consumers who are still unsure about all the modern features. Ensuring that your dealership has an EV on the lot that interested buyers can test drive is essential to your profitability within the electric car market. 

Quality and Timely Maintenance

EVs require less maintenance due to a variety of reasons such as fewer moving parts, fewer vehicle fluids, and less brake wear because of their regenerative braking. It’s already difficult for dealers to convince consumers to bring in their gas-powered vehicles for timely maintenance, let alone their EVs. 

However, the number of electric vehicles is expected to increase in 2022: from roughly 62 available models to at least 100. Whenever an unforeseen mechanical, software or electrical problem occurs within these new models, manufacturers will need a well-distributed and educated service network. The existing dealer community can start preparing now to handle these service requests.

Integrated Vehicle Technology

Another way dealers can prepare for electric car market growth is by relying on the help of vehicle maintenance apps. These apps allow dealers to:

  • Send personalized maintenance alerts to customers and direct them back to their dealership when an issue may arise.
  • See a comprehensive overview of the status of all their vehicles and create custom messaging that is specific to the driver’s needs. 
  • Achieve significant returns since the app acts as an added profit center and is separate from revenue generated from repair orders.

CarRx: A Smarter Approach to Modern Service

Elo GPS with CarRx is a vehicle maintenance app that is designed with dealers in mind. Unlike tedious and expensive options provided by digital marketing companies, CarRx takes the hassle out of customer communications and simplifies the process of scheduling routine service and maintenance visits, increasing customer retention and satisfaction.

To learn how this smart technology can help you kickstart your growth within the electric car market, connect with our solution experts.