With the sale of new electric vehicles (EVs) set to accelerate further in 2024, following the January introduction of the Zero Emission Vehicle (ZEV) mandate, dealers are being urged to have processes in place to retain more EV customers for aftersales work.
Under the new legislation more than a fifth (22%) of new cars sold by each carmaker must be fully electric in 2024, with the quota rising each year to meet the government’s target of 100% by 2035. Under the rules manufacturers face a £15,000 fine for each non-compliant vehicle they sell over the quota.
With EVs having fewer consumables and moving parts to service and maintain, EMaC is advising franchised dealers to ensure buyers are offered aftersales care packages to increase retention and drive workshop utilisation.
“With EVs already accounting for one in six of all new cars sold, franchised dealers run the risk of taking a major hit to their workshop revenues unless they have processes in place ahead of the ZEV mandate,” said Serkan Obuz, EMaC Director – Maintenance Plans.
“Across the sector, we estimate dealers without strong retention strategies are already seeing aftersales absorption rates reducing to around 50-60% because of increased EV sales.
“To address the shortfall dealers need to be achieving higher rates of aftersales retention from EV customers as they plan their 2024 targets. The ZEV mandate needs to be viewed as an opportunity for dealers to refocus on the profitability benefits of having good customer retention strategies.
“The best performing dealers are already innovating to create stronger cultures of customer satisfaction and loyalty by offering maintenance plans with every new EV they sell,” said Obuz.
This year EMaC has seen an increase in demand for plans covering the replacement of tyres and brakes, as customers factor in the faster wear associated with the heavier weights of EVs.