US Dealers Skeptical About EV Future – Study Finds

A recent study by CDK Global, a prominent technology provider in the automotive industry, has shed light on the sentiments of U.S. car dealers toward the ongoing transition to EVs. This final report in a series examining various aspects of EV adoption—from consumer behavior to dealership impact—reveals a concerning level of pessimism among dealers, particularly regarding the viability of EVs in their business models.

Key Findings from the Dealer Study

The study, involving 250 participating dealers across various regions of the United States, found that over 65% of dealers are pessimistic about the future of EVs positively impacting their businesses. This sentiment is underlined by the lack of customer interest, with nearly a third of dealers reporting that their customers are disinterested in EV technology. The negativity varies significantly by location, with dealers in rural areas and certain regions expressing more skepticism compared to their counterparts in EV-friendly states like California, New York, and Washington.

Geographical Disparities and Market Dynamics

Geography plays a crucial role in shaping dealer and consumer attitudes towards EVs. The study highlights a stark contrast between areas with robust EV sales and those lagging behind. This regional disparity includes factors such as local charging infrastructure, economic conditions, and cultural preferences—elements influencing EVs’ availability and attractiveness in different markets.

Dealership Challenges

Dealers face numerous challenges in transitioning to EVs, including adapting to new technologies, modifying facilities, and training staff. Although 89% of respondents represent brands that sell EVs, only 59% have begun transitioning their operations to accommodate these vehicles. This slow adaptation is partly due to the current infrastructure inadequacies, especially in states like North Dakota and its neighbors, which have the fewest public charging options in the country.

Government and Industry Support

The federal government and various industry players are making a significant push to address these challenges. The Biden administration, through initiatives like the Bipartisan Infrastructure Law and the National Electric Vehicle Infrastructure (NEVI) formula program, has accelerated the development of a national charging network. This expansion aims to alleviate range anxiety and make EVs a viable option for more Americans.

Strategies for Enhancing Dealer and Consumer Engagement

Accelerating the development of a national charging network is pivotal in enhancing the viability of EVs across the country, including in rural areas where adoption has been slow. However, it is only one piece of a larger puzzle, as a charging network is most beneficial for drivers either away from home or those residing in urban settings, where vehicles can easily be charged at public stations.

For people living in rural areas where the nearest public charger may be impractically distant when they are at home, the need for improved residential charging solutions becomes apparent. Barriers such as the expense of installation, outdated electrical systems in older homes, and reliance on the grid can severely limit and complicate access to home charging, making EV uptake in rural areas quite challenging.

One of the most promising developments in addressing these challenges is the potential for portable solar charging solutions that do not depend on the grid. Solar EV and off-grid charging has become one of the most searched for topics in E+E Leader coverage over the last two years, capturing extremely high interest from consumers. As technology evolves, more innovations are anticipated that could make solar charging – or potentially solar EVs – a more practical option for widespread adoption by consumers.

To ensure the continued rollout of EVs can overcome dealer skepticism, several strategies need to be prioritized:

Enhanced Training and Support:

Dealerships require more comprehensive training programs and support from manufacturers to boost confidence in selling and servicing EVs.

Targeted Marketing and Consumer Education:

Addressing common misconceptions about EVs through targeted marketing strategies and consumer education can help increase customer interest and acceptance.

Adaptation to Regional Needs:

Dealership strategies must be tailored to fit their respective regions’ unique demographic and economic characteristics, acknowledging the varied pace of EV adoption across the country.

Final Thoughts

The transition to electric vehicles represents a monumental shift in the automotive industry, requiring concerted efforts from dealers, manufacturers, and policymakers. Focusing on regional needs, enhancing dealership capabilities, and leveraging government and industry support at both federal and state levels, will ensure the U.S. can navigate the challenges of this transition effectively. A collective approach is required to support dealers through the changing landscape while ensuring that the shift towards sustainable transportation is both inclusive and equitable.