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Friday, December 8, 2023
HomeBusinessAre Car Dealers Hindering the Uptake of Electric Vehicles?

Are Car Dealers Hindering the Uptake of Electric Vehicles?

Car dealers are resisting the transition to electric vehicles due to the economic model in place, which relies heavily on profits from the service of gas vehicles rather than the sale of new cars, particularly electric ones. As a result, dealers are less inclined to sell electric vehicles due to concerns about lower profit margins, reduced commissions, and fewer visits from customers for maintenance and service. The lack of extensive training for salespeople on electric vehicle technology and tax incentives adds to the resistance, with some dealerships opting not to offer electric vehicles for sale at all.

Electric cars have narrower profit margins, leading to less take-home pay for salespeople. This is further aggravated by the return visits and fewer vehicles in need of maintenance. The resistance to electric vehicles is felt at the state level as well, where many states have laws in place protecting auto dealerships and preventing manufacturers from selling directly to consumers. With the transition to electric vehicles, car dealerships are struggling to adapt to the new economic model, contributing to a slowdown in the sale of electric vehicles. Dealers are facing a dilemma of changing their economic model to adapt to the surge of electric vehicles in the market, ultimately leading to an overall slowdown in the electric car market.

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