Abstract:

Electric vehicle (EV) sales are surging, transforming every aspect of the business. The growth of electric mobility will have far-reaching consequences for auto dealers, touching virtually every aspect of the business. There's a lot to consider from the redistribution of profit pools to adopting new operating procedures. Maintenance workers will need training to safely and efficiently service high-voltage powertrain systems, while frontline sales staff will be expected to answer consumer questions competently and close the sale. Electric vehicles also tend to have fewer mechanical parts that break down, which has significant implications for aftersales service. To help US dealerships prepare for the coming change, the authors assess the state of EV sales-readiness along six key dimensions, i.e., in-store experience, test drives, the sales process, and expertise with regard to the total cost of ownership (TCO), battery, and charging,  while offering an in-depth analysis of the US EV market. While the situation with reduced inventory could continue through 2022, the EV revolution is gaining speed, fueled by government action toward a greener economy, increasing consumer appetite for EVs, and a growing number of OEMs shifting their portfolios toward EVs.