The People Want EVs, But Who Will Sell Them to Us?

Of the 17.3 million cars and trucks sold in 2017, about 1.2%, or 200,000 of them, were EVs. However, many dealerships appear to be less than enthusiastic about selling them, leading to poor buying experiences and possibly fewer EV total sales. There are multiple reasons for this, including a lack of knowledge and longer sales time, but one major one seems to be that since EVs require less maintenance than conventional vehicles, the dealership service departments stand to lose revenue. While it might be a downside for dealerships, less maintenance is also one of the biggest selling points of EVs, which cost about one-third per mile to drive (electricity vs. gasoline) and have significantly fewer moving parts. But, since about half of car dealers’ revenue comes from their service departments, and vehicle service is about a $250B per year industry, more EVs could mean billions of dollars in lost service revenue. If the demand for EVs materializes as the projections indicate, someone will sell them to us. As things currently stand, however, certain key players are resisting change for their own short-term self-preservation. Car dealers will need to change their current business model and figure out how to survive in an increasingly electrified world. Forbes