What is the impact of EVs on service revenue?

[monik]

As EVs are getting more popular what impact are you seeing it make on your service dept revenues? The claim that EVs need dramatically lower service hold any weight? Is it translating to lower revenues? If so, how are you thinking about the future? I understand it may be too early to tell but what are you seeing on the front lines?

 

[Jeff Kershner]

As you mentioned, It could be a bit too early to tell. Of course oil changes will no longer be a staple reason for a service visit, there's still many maintenance items shared between the EV and ICE vehicles - tires, brakes, air conditioning, infotainment systems, etc.

One item that many dealers fail to focus on are TIRE SALES. Increasing your dealers Tire sales and installs could help alleviate some of the "missed opportunities" from lost oil changes. Initial data shows that EVs are much harder on tires than an ICE vehicle. Data from a high‐mileage (400,000 miles) Tesla test vehicle had a total of 59 service visits, not far off what a typical ICE vehicle would have. But what was shocking was that 47% of these visits were for tires or something tire related.

Here are a few articles on the topic:

How will EVs affect your service department?

As dealers grapple with the impact that EVs will have on their business, no one is asking what these vehicles will do to the service parts business?

www.cbtnews.com

"The main difference between EV and ICE vehicles is the powerplant (engine). Both vehicle types have tires, brakes, air conditioning, infotainment systems, etc.—all things that need maintenance and possibly repair. So, how much of today’s service work is centered around the internal combustion engine itself? From a repair perspective, not much at all (other than some isolated issues and recalls). Engines and drivetrains for that matter have become pretty bulletproof."

What Dealers Say About the EV Transition | CDK Global

CDK's fourth and final white paper focusing on EV's, Dealers Face the EV Transition, examines feedback from dealer leadership from all over the country to try and understand their perspectives on the transition to EVs. Download the white paper to learn more.

www.cdkglobal.com

"The Dealers Face the EV Transition white paper also looks at all these findings through the lens of geography. That’s because where a store sits can dramatically impact the EV equation."

Dealers brace for EV impact on Fixed Ops

The rise of electric vehicles and the trend of increasing popularity among consumers will have an impact on fixed ops—both the department and its profitability As governments push for greater adoption of electric vehicles and automakers prepare to launch more electrified models, many dealers are...

canadianautodealer.ca

"A 2021 Deepview True Cost Second Owner Study (SOS) report, which was published by We Predict, found that service costs for electric cars and light trucks are 30 per cent lower than their gas-powered counterparts at three years on the road, thanks largely to lower maintenance costs. The report states that repair costs are 22 per cent lower for EVs, because they have fewer mechanical parts than gas vehicles."

 

[Carsten]

Here's something ... The John Deere effect will likely keep spreading; moving repairs from your driveway into the bay of dealers.

I am on the fence. I want an EV but yet I don't because I live in a condo and getting a wall charger installed isn't easy. Maybe when I move.