Why Your Auto Dealership Needs EV Charging Stations
**This blog has been updated. Read out our updated version here.
Electric vehicle sales continue to surge forward. After logging a record-breaking 6.6 million global EV sales in 2021, the International Energy Agency (IEA) reported that EV sales were already up 75% year over year in the first quarter of 2022. With strong policy support and aggressive climate initiatives, prioritizing plug-in hybrids and fully electric vehicles makes more sense for auto dealers than ever.
But with that growing demand for more EVs on the lot comes the need for a charging infrastructure to support them. After all, a customer can’t test-drive an EV with a dead battery.
Despite the need, though, many auto dealers are hesitant to take on the significant cost of adding EV charging stations to their dealerships. Delaying this investment postpones the inevitable — and could ultimately make your dealership miss out on many opportunities in the meantime. Here’s why your auto dealership needs EV charging stations sooner rather than later.
1.) Energize Sales
It may go without saying, but the more prominently you can display electric vehicles and EV charging stations in your dealership, the more opportunities you have to sell them. With a strategically placed network of charging stations, you can have plenty of EVs visible to customers and ready to test-drive.
That prominence also creates more opportunities for conversation and education. For many Americans, the interest in EVs is there, but the knowledge isn’t. A 2020 Consumer Reports survey showed that only 30% of U.S. consumers reported knowing much about EVs. Putting them front and center and showing off how charging works is a great way for you to educate customers about how charging works, alleviate their fears about driving range and show them all the bells and whistles to get them excited about buying.
Not only that, but many automakers are prioritizing dealers who invest in more charging stations for more EV inventory. If you don’t have the infrastructure in place, you may not get many cars to sell in the first place.
2.) Attract Eco-Minded Customers
Electric vehicles were once a novelty item in the minds of most drivers. But that is quickly changing as more consumers embrace the idea that electrification is important for the environment. In fact, that same Consumer Reports survey noted that 71% of Americans would be interested in purchasing an EV in the future.
When you install EV charging stations in your dealership and connect to a charging network, you can quickly gain visibility with this growing swath of eco-conscious consumers. You’ll show up on charging station maps and you can advertise this service on your website, business listings, social media and more. In essence, your charging stations become a billboard for your business, announcing that electrification is a priority for you.
3.) Fuel Customer Loyalty
When your dealership is well equipped with EV charging stations, it not only helps you increase sales but also builds loyalty with your existing customer base. As more consumers become comfortable with the idea of plug-in vehicles, they’ll prioritize businesses that make it easy to recharge their batteries.
This is especially true for the place they will frequently bring their EV for service. When your mechanics can do the job and return the vehicle to your customers fully charged and road-ready, you reinforce strong connections that can reap long-term rewards.
4.) Keep Costs Manageable
The price tag of installing EV charging stations can be a hurdle for auto dealerships, but there are options to lower this barrier. Dealers can choose between level 2 chargers and the more expensive level 3 fast-charging options. There are various pros and cons to each of these, and the costs can vary significantly, so you’ll want to weigh the options and electrical infrastructure changes needed before you proceed.
The good news is that, regardless of which option you choose, there are ways to keep costs down. In addition to existing federal tax credits, many state and local programs exist to offset the upfront costs for companies that install EV charging infrastructure. Likewise, utility companies around the country offer incentives to help accelerate the return on investment, and dealers can even turn charging stations into an additional revenue stream if they open them to the public and charge EV drivers to use them.
Prepare for an All-EV Future
The ultimate benefit of installing EV charging stations in your dealership is that it future-proofs your business. The writing is on the wall for gas-powered cars. In the U.S. and abroad, governments and automakers are rolling out aggressive policies for transitioning to electric vehicles over the coming decades.
GM, in particular, has shown its commitment to electrification by deploying charging solutions, including EV Connect, at their dealerships throughout the U.S. and Canada. Like GM, dealers that make the move today are setting themselves up to remain competitive moving forward.
If you’re wondering how to add EV charging stations to your dealership, EV Connect can help. As one of America’s largest charging networks, we’ve helped countless businesses install charging stations to remain competitive as the world goes electric. Connect with us to learn more and read our EV Charging 101 guide to see how your dealership can prepare for an EV future.
Sources
International Energy Agency (IEA) - Global Electric Car Sales Have Continued Their Strong Growth in 2022 After Breaking Records Last Year
Consumer Reports - Consumer Reports Survey Shows Strong Interest in Electric Cars
Automotive Mastermind - 3 Ways the Dealer of Today Can Serve Tomorrow’s EV Buyers
International Energy Agency (IEA) - Policies To Promote Electric Vehicle Deployment