Fixed Ops Magazine - 2022 Vol19 04 - 28

FEATURE BY LIESL LAROUCHE
THE
RISE OF
EV SALES
and the Impact of EVs on Fixed Ops
O
ne inescapable topic in the automotive industry
is the rise of EV sales. According to the US
Department of Energy, EV sales have grown
exponentially in the past couple of years. Between
2020 and 2021, we saw an 85% rise in EV sales and a
138% rise in the sale of Plug-In Hybrids (PHEVs). More
people are making the move to buy electric and ditching
their gas or diesel powered vehicles.
Over the past century, electric vehicles have faded in
and out of production and popularity. Once again, they
are making a comeback. This time, the momentum is
stronger than ever before. The difference is that modern
electric vehicles are perceived as more reliable with
fewer breakdowns, repairs, and parts replacements.
They are also more environmentally friendly, as they do
not need as much, if any, gasoline. No gas also means
the owner saves money! These are all positive selling
points to current day consumers.
Also unlike the fleeting trends of the past, the popularity
of EVs is not expected to decline, but to continue
28
to grow. According to Bloomberg, the U.S. recently hit
a turning point in EV sales with over 5% of all new car
sales being electric and, if the trend continues, the U.S.
could see up to 25% of new vehicle sales be electric by
2025. Especially in Fixed Ops, dealers will certainly be
affected by this development. More EVs will ultimately
mean less need for replacement parts and fewer cars
coming through the service lane for frequent maintenance
and repairs.
WHY ARE DEALERS CONCERNED?
According to NADA, Fixed Ops makes up 49% of the
average dealership's gross profit. This means as EVs become
more popular, this share of profit may go down.
Because EVs require less maintenance and experience
fewer breakdowns, their owners may not have as much
need to return to the dealership after they drive off
the lot. Fewer vehicles will need to come to the dealership
to be serviced once EV drivers say bye-bye to oil
changes and more vehicles have fewer parts to replace.
For example, the average EV has only 20 moving parts
compared to the 2,000 included in an ICE (internal
Fixed Ops Magazine - 2022 Vol19 04

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