Why EVs Aren't Popular
Electric vehicles are making their way into our everyday lives, and you can find more of them zipping around on the highway than ever before. There’s definitely a lot to consider as we find ourselves in this sandwich between gas and electric technology.
For consumers, electric vehicles can be a good investment because of the low maintenance costs and no fluctuating gas prices to worry about. If you compared the total cost over time of a gas vehicle to an electric one, buyers would spend less on an EV, but they have to be prepared to spend a pretty penny up front. Some downsides are the need to charge, where to charge, and how long it takes. There are more charging stations in urban settings, so an electric vehicle may make more sense for people living in large cities than for someone living in a rural area. Owning an electric car can mean making big lifestyle changes, and whether it balances out over time is dependent upon the person buying it. These large inconsistencies are bad for business when it comes to dealerships.
Putting Tesla aside for the moment, most car manufacturers put all their eggs in one basket when it comes to making an electric vehicle. This leaves little variety to choose from within a brand, which is not appealing for buyers, making the “one and only” electric vehicle a difficult sell for dealers. At this point, EV’s only make up about 1 percent of vehicle sales. This percentage is a result of many consumers being uninterested or uneducated about electric cars.. People have no idea how many miles a charge will take them or how durable the car is in different climates. One of the first major selling points when you aren’t well versed is the decrease in costs involved in maintaining an EV.
Low maintenance is a cool perk for buyers but how does this affect fixed ops, which is the real money-maker of any dealership? If EVs end up growing in popularity, dealerships may have to rethink their business models. With less maintenance and less parts than a traditional car, the need for service techs will decrease along with cash flow coming in. How will manufacturers offset this loss of revenue to keep dealers on board? It only makes sense that dealers want to push more gas fueled cars than electric.
There will always be consumers who want traditional vehicles. All the predictions about electric cars taking over the market may be true, but that’s a long way off. There’s more time to learn, improve technology and adapt to the change before gas-powered vehicles go extinct.
