The electric vehicle (EV) revolution is transforming the automotive industry, and EV charging stations for auto dealerships have become an integral part of this shift. With more automakers committing to all-electric fleets in the coming decade, dealerships need to install EV charging stations to stay competitive. These stations not only attract EV customers but also offer an opportunity to boost revenue and improve the overall customer experience.
As dealerships prepare for the transition to electric, let’s explore why installing EV charging stations for car dealerships is more than just a nice-to-have; it’s a business necessity.
Adapting to Electric Vehicle Trends in Auto Dealerships
The Rise of EV Dealerships
The growing demand for electric vehicles is leading auto dealerships across the U.S. to adapt their business models. Major automakers such as General Motors, Ford, and Volkswagen have announced plans to transition to fully electric fleets by 2035. In the U.S., electric vehicle sales have seen a significant increase, and it is projected that 50% of new vehicles sold by 2035 will be electric.
However, transitioning to an electric future isn't as simple as just having electric vehicle (EV) models in stock. Dealerships also need to create an EV-friendly environment, which includes having charging infrastructure on-site. This not only ensures that EVs are fully charged for test drives and servicing, but also makes dealerships more attractive to EV buyers.
Public Charging Stations as Customer Magnets
Having public EV charging stations at a dealership can attract both current and prospective EV owners. These stations not only provide convenient charging options but also make the dealership more appealing to potential customers. Furthermore, they offer a great opportunity for sales teams to interact with potential buyers. EV owners typically spend more time at the dealership while their vehicles charge, providing sales teams with additional time to introduce them to new models and services.
Opportunities with Public Charging Stations
Generating Revenue Beyond Car Sales
Did you know that dealerships can earn revenue in addition to selling cars by offering public EV charging stations? Charging services can bring in impressive gross margins of up to 75%- 100%, providing dealerships with a profitable new income stream. Some dealerships have reported earning as much as $60,000 per month from their public EV charging stations. These additional revenue streams can help offset the relatively low margins on new car sales, which usually hover around 3.9%.
Key Revenue Opportunities with Public Charging Stations
- High-margin opportunity: 75%-100% gross margins on charging services.
- New revenue stream: Some dealerships earn $60,000/month from public charging.
- Potential for long-term gains as EV adoption continues to rise.
Boosting Service and Parts Profits with EVs
Dealerships can still provide profitable services for electric vehicles, such as home EV charger installations, battery diagnostics, and software updates, despite their generally lower maintenance requirements. Additionally, the availability of EV charging stations for auto dealerships can lead to more repeat visits for service, further boosting service and parts sales.
Attracting and Engaging EV Customers
EV Charging Stations as a Sales Tool
EV charging stations serve as more than just car chargers - they also act as a sales tool for dealerships. Whenever an EV driver stops to charge their car, it presents an opportunity to engage with a potential customer. Sales teams can demonstrate how easy it is to charge an electric vehicle, explain the benefits of switching to EVs, and even offer test drives of the latest models while the customer's car charges.
Moreover, having EV charging stations for car dealerships shows customers that you’re serious about the future of electric vehicles, which builds trust and loyalty among eco-conscious buyers.
Ensuring a Seamless Test-Drive Experience
One of the main advantages of electric vehicles is the driving experience. However, this experience can be compromised if the test vehicle is not fully charged. By installing EV charging stations at your dealership, you can ensure that every car is fully charged and ready for test drives. This not only enhances the customer experience but also increases the likelihood of a sale, as customers can experience the vehicle's full capabilities.
Managing the Costs of Installation
Federal and State Incentives
While the initial cost of installing EV charging stations for auto dealerships might seem high, there are various federal and state incentives available to offset these expenses. Dealerships can benefit from federal tax credits that cover up to 30% of the installation costs. State and local programs can also provide grants and rebates, further reducing the financial burden.
How Dealerships Can Manage Installation Costs
- Federal tax credits: Up to 30% of installation costs can be covered.
- State and local rebates: Additional financial support for installation.
- Long-term savings: Energy-efficient systems help reduce operating costs.
Cost-Effective Infrastructure and Energy Management
For car dealerships situated in regions with restricted access to grid power, energy management systems such as those provided by EVESCO offer a practical solution. These systems enable the storage of energy during off-peak periods and its utilization during high-demand hours, resulting in potential cost savings of up to 70% on overall energy expenses. This not only aids in reducing initial installation costs but also guarantees sustained energy efficiency and cost-effectiveness for the dealership in the long term.
The Role of Charging Stations in the Future of Dealerships
A Pivotal Role in Clean Transportation
As more automakers roll out electric models, dealerships are uniquely positioned to play a pivotal role in the transition to clean transportation. By installing EV charging stations, you not only contribute to reducing carbon emissions but also align your dealership with the growing demand for eco-friendly solutions. Customers are increasingly looking for businesses that support sustainability, and by offering EV charging stations for car dealerships, you’ll attract eco-conscious buyers who want to support companies with green initiatives.
Future-Proofing with Scalable Solutions
One of the most innovative ways to adopt EV infrastructure is to start small and scale as needed. Installing a few chargers now and adding more as demand grows ensures that your dealership remains adaptable to the changing market. Whether you opt for Level 2 chargers for overnight charging or DC fast chargers for quicker customer needs, having scalable solutions means your dealership is always prepared for the next wave of EV buyers.
Conclusion: Seizing the EV Opportunity
Given the increasing demand for electric vehicles (EVs), dealerships that make strategic investments in EV charging stations will find themselves well-positioned to capitalize on this rapidly expanding market. These charging stations not only serve as a draw for customers, potentially generating additional revenue streams, but they also position your dealership for long-term success as the automotive industry makes the inevitable shift toward full electrification. Embracing this opportunity at the present moment will undoubtedly establish your dealership as a forward-thinking industry leader, paving the way for sustained prosperity in the years to come.
