How EVs will affect the traditional dealership service system

THE biggest concern in countries that have embraced electric vehicle (EV) technology comes from dealerships and car service center owners who cater to individual brands.

Revenue from the traditional car sales business is largely dependent on after-sales services and not on the actual sale of cars. Selling cars is probably the smallest revenue generating activity of a dealership/showroom.

A vehicle should have a regular preventative maintenance service which usually takes place two or three times a year, depending on its use/mileage.

But electric cars don’t need to change the oil or many fluids that typically come with an internal combustion engine (ICE).

And most electric cars have longer service intervals while some, like some Audis, have no mileage limit during each scheduled two-year service period.

Autocar UK said “most manufacturers are making maintenance savings a key part of their electric car offering to customers. Nissan, for example, says owners can cut costs by 40% compared to an ICE vehicle. Nissan states on its website “no more oil changes and no tailpipe emissions, means more emissions testing. “”

This is a big deal for many dealers/service centers because they make their biggest margin from regular oil changes, oil filter replacements, and other ICE engine part replacements.

Since electric vehicles have fewer moving parts compared to an ICE engine, their maintenance requirements are lower.

But the problem is that selling and servicing electric vehicles requires additional investments in equipment, training, education and resources. Many regular tools used for ICE are not compatible with electric vehicles, which will lead to a major reconfiguration of service centers.

In Europe, the car dealers’ association paints a bleak picture but, as Autocar UK reported, “some car experts believe going electric could be a catalyst for positive change, as dealers are forced to cultivate longer-term relationships with their customers and cars to retain service work previously lost to the independent sector.”

In the Philippines, the electric vehicle is just beginning to take hold with two major brands showcasing a viable transition to electric cars.

Nissan introduced the Leaf which can also serve as an alternate power source in an emergency, in addition to having a longer travel distance per battery charge and an exclusive portable charging pack for on-the-road recharges.

Audi, although more upscale, introduced its SUV and RS e-tron models which also have extended travel distance per charge and single charge port facility provided to homes for buyer customers.

Of course, that doesn’t take away from the fact that servicing these models is not only unprofitable, as the gaps between inspections are large, but also requires dealerships to provide the “upgradable technology” necessary for the car maintenance, which is an added bonus. Cost.

Nissan has appointed Gateway Motors Group of Cebu to be the main distributor of the Nissan Leaf in the Philippines, reducing the exposure of many other dealerships in the Nissan farm.

Audi has Robert Coyiuto Jr.’s PGA to sell its cars. The PGA centers have installed the necessary technological equipment for all their electric vehicle models, including those from Porsche.

In the end, those in the business who take the first initiative usually get the prize in the long run. And with 95% of automakers globally focused on going all-electric by 2035, Nissan and PGA appear to be on the right track.

Comments are closed.