The EV revolution is here, make no mistake about it. Yet dealers across the country are wondering how to address this major shift in all areas of their businesses. More importantly, what can you do to ensure that you’re still meeting your bottom line at your parts counter during this unprecedented time?
In this blog post, we’ll review what’s going on with the electric vehicle revolution and detail a few tips and tricks to help you meet this industry shift while keeping owners coming back.
What’s happening in the industry
The EV market is growing, though there are some bumps in the road
According to Automotive News, electric car registrations in the United States rose 15% in January when compared with 2023. But on the flip side, that number lags behind the overall 52% rise in registrations for all of 2023. So while the EV industry is growing, there are some growing pains. Nevertheless, consumers continue to purchase these vehicles.
The passenger car remains supreme
According to IMARC Insights, passenger cars hold a unique place within the electric vehicle aftermarket due to their versatility and widespread adoption (conversely, the pickup truck has been slow to gain popularity in the EV sector). Much like ICE owners, EV owners look to personalize their passenger cars for enhanced performance, aesthetics, and convenience.
Common EV customization options include both interior and exterior modifications with body kits and paint wraps as well as premium seating and advanced infotainment systems, the likes of which aren’t so different from ICE parts. Therefore, parts managers looking to adapt to the EV market can use similar upselling approaches.
Sustainability is increasingly becoming a customer priority
Beyond EV usage, customers are generally becoming more environmentally conscious. Consumers are increasingly expecting brands to engage in sustainable practices, like looking for green packaging and evidence that companies are taking action. The EV rise is only a part of this overall sustainability push.
Read more about sustainability in eCommerce
Tips to address the rise of EVs
Speaking of shifting customer priorities, this concept is key to understanding the EV revolution. So what can you do at your parts counter to meet these trends? How can you continue to capture sales as this industry changes?
Rethink parts needs
If you’re already selling online, you may need to consider shifting your focus to cater to the growing EV market, especially if you're located in a top city for EVs. While EV owners may not need traditional engine maintenance services, they still need various parts and accessories—and service.
You can expand your offerings to include EV-specific parts:
- basic maintenance kits - wiper blades, fluids, cabin air filters
- charging equipment and accessories
- accessories bundled with installation
What’s more, EVs tend to have slightly more service visits than ICE vehicles, giving dealers more opportunities for customer interface and parts or accessories sales.
By positioning yourself as a one-stop shop for all EV-related needs, you can build customer retention in a new way.
Concerned about customer retention? Take a look at all of IFM’s platform capabilities.
Take another look at tires
Tire sales are a significant opportunity for you to attract and keep EV owners as customers. While EVs have differing service needs compared to ICE vehicles, the requirement for high-quality tires and regular rotations stays constant across all vehicle types. You can promote your expertise in tire service and highlight the importance of choosing the right tires for optimal performance and safety.
You can also offer a comprehensive range of EV-specific tires from reputable manufacturers, highlighting features such as:
- low rolling resistance
- improved energy efficiency
- enhanced grip for the EVs’ unique weight distribution
By doing this, you can set up a lucrative niche for your service bay and foster long-term customer relationships within the growing EV market.
Leverage accessories & gear
You can use your existing expertise in automotive accessories and merchandise to appeal to EV owners. There are many items that are universally used in both ICE and EV vehicles, and in fact, accessories installation is one of the top services for EVs:
- exterior enhancements like roof racks
- floor mats
- cargo organizers
You can curate a selection of EV-friendly accessories and market them strategically to EV owners, highlighting their compatibility and benefits for enhancing the overall driving experience in the same way you do with ICE vehicles.
Explore your options
Furthermore, you can explore partnership opportunities with EV manufacturers or third-party providers to offer services tailored to electric vehicles. This could include:
- on-site charging station installations
- battery recycling programs
- accessories promotions
By embracing the EV revolution and adapting your business models accordingly, you can remain relevant and capture a significant share of the parts and accessories market for both ICE and EV owners.
Learn more about the overall customer buyer journey
Got questions?
Got questions about how to navigate the EV revolution? We’ve got the answers. Depending upon your package, you can schedule a session with our industry expert dealer strategists at coaching@simplepart.com or reach out to our Client Services team at support@simplepart.com or 1 (888) 843-0425.
