Why Car Dealers Don’t Want to Sell You an EV
Andrea Persico
A very common experience of someone shopping for an Electric Vehicle, is to walk into a local dealership, even one with an EV on the floor, and be guided by a slick salesman to consider instead a petrol equivalent, or at least a hybrid, of the vehicle they initially came in to see.
Why is this? The buyer had been buoyed by their own research into the enormous fuel cost savings an EV will give them, particularly if they are charging from their own rooftop solar. They have been pleased to learn that an EV requires less maintenance during its life, having much fewer consumable parts to be replaced and breaking down less frequently than petrol cars. They have researched the safety features of modern electric cars, and have assured themselves that the range they can achieve in an EV is more than sufficient, with current EV battery sizes and a growing network of public chargers.
They falter. Surely the sales agent is an industry professional with a better understanding of vehicles than the average Joe. There are several reasons why the dealer is not happily slapping the roof of the EV you thought you wanted, and instead shaking his head sadly and steering you across the showroom floor.
While I refer to dealerships generally here, these practices are not the case at all dealerships, but they certainly exist in the industry, and may explain reluctance to sell electric vehicles to consumers or fleets.
Some dealers don’t get a commission for EV sales. Many car manufacturers are requiring EV orders to be made online, paying dealers a delivery fee only rather than a sales fee. This means that salespeople are tangibly worse off for each EV sold.
This misalignment of incentives should be easy to fix, especially as EV prices continue to fall.
Less ongoing servicing requirements. EVs need less servicing, and servicing is a large revenue centre for car dealerships.
Again this could be fixed by the dealers expanding their horizons, perhaps into charging equipment.
Lack of training. The technology and features of EV driving are considerably different to an ICE (Internal Combustion Engine) Vehicle, and as such require different knowledge to sell. Many dealers just don’t understand them.The Motor Trades Association of Australia (MTAA) this week announced an acute shortage of EV mechanics, and a concerted effort is needed to train maintenance staff.
Peer pressure. The vehicle industry is still dominated by petrol heads who seem to question whether the, quiet, clean, and efficient EVs are here to stay . However a little electric mini would have no problem taking on a V8 and handles considerably better. Traditional car lovers the world over are being transformed by the experience of getting behind the wheel of an EV, or finding that Formula E (all electric) racing is just as exciting as F1, and a great deal easier on your hearing.
Right now, the car industry is in shock as Tesla and Polestar have quit their membership of the Federal Chamber of Automotive Industries (FCAI), over their misinformation campaign regarding the proposed New Vehicle Efficiency Standard (NVES). Volkswagen look poised to follow.
The industry as a whole needs to adapt to the tsunami wave of change towards EV, and dealerships who do not adapt will be left behind.
Each year the rate of EV sales is doubling, from 3.5% in 2022, to 7% in 2023. When combined with Hybrids, the rate is already at 15%. When the NVES comes into effect we should see those numbers rise dramatically.
Andrea Persico is a consultant specialising in electric vehicles and charging infrastructure, and a Carbon Zero Initiative Clean Energy Champion.
