Consumers everywhere in the world are adopting electric mobility and driving the sales of EVs. And what does increased adoption mean? Demand for quick access to reliable charging systems will keep rising. To meet this growing customer need, the global capacity for public charging needs to increase ninefold by 2030, according to a report by Infrastructure News. While private companies and governments are working to expand the charging ecosystem, dealerships are better positioned to close the gap. If an automobile dealer installs vehicle chargers at their outlets, for instance, customers already loyal to them and random visitors enjoy charging convenience. This lowers range anxiety and boosts a broader transition to EVs. But how can auto dealerships tap into the business of electric vehicle charging? In this post, we’ll discuss steps to launch public chargers at dealerships and become successful.
Know the Business Objectives
Anyone interested in this venture should answer this question first: what are the primary reasons for establishing dealership charging stations? The goal could be to elevate the customer experience and future-proof your business. And you can succeed by having fast chargers at your auto shop site for recharging demo vehicles for test drives. Car owners can also use these chargers to recharge their batteries. The convenient recharging and test drives will obviously attract customers.
Consumers also feel empowered to choose EVs because they see recharging facilities are available. Currently, 80% of people planning to buy an EV believe the systems available for charging vehicles are insufficient, according to a McKinsey survey. So, dealership-based chargers can serve as the bridge to mass transition while future-proofing their businesses as more customers choose to purchase electrified automobiles. Something else car dealers can do is provide emergency charging for a quick recharge. Emergency visits from travelers can turn into sales opportunities for new rides or car accessories, thus increasing your revenue.
Determine Target Customers and Ideal Infrastructure
Dealerships need to identify the clients they will serve. Is it individual EV owners or commercial fleet companies? Each demographic has unique charging needs. For instance, individual car owners desire fast charging at stations in convenient locations along their travel routes. Fleet operators, on the flip side, want super-fast on-route chargers for unplanned or long-haul needs. And not the basic chargers. They want infrastructures with smart power management for overnight or shift-based charging.
Knowledge about what customers want helps decide which EV chargers to install. Setting up both Level 2 and Level 3 or DC fast chargers is a brilliant move. Level 2 or AC chargers are ideal for customers who want overnight recharging, top-ups during service or maintenance appointments. Plus, they’re cost-effective for startups. For dealerships in high-traffic areas, direct-current fast charging or level 3 chargers are perfect. Super-fast chargers help satisfy the demand for quick test drives or recharging speeds of 80% in 30 minutes.
Plan Strategically
A firm strategy is essential for adding EV charging services to your dealership business. So, research how much buying, installing, and licensing the infrastructure costs. Don’t forget to calculate operating costs, such as maintenance and electricity bills, and budget. Next, find ways to lower the startup costs and increase profit margins. The first option should be finding government incentives and tax credits. What if you collaborated with energy providers? You can negotiate for affordable electricity rates or secure renewable energy sources, which helps provide competitive pricing. A partnership with manufacturers is necessary as it will give you access to the latest vehicle charging tech at lower prices.
The acceptance of EVs is accelerating and giving dealerships a perfect opportunity to include charging services as part of the business. To thrive, however, automobile dealers must have clarity on how to deploy chargers. First, they must be clear on why they’re starting dealership-based automobile chargers and who the target clients are. Another crucial aspect is knowing how much is needed to install charging ports that will better serve their customer needs.
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