Managing Electric Vehicle Sales: Tips for Dealership Sales Teams
Managing electric vehicle (EV) sales has been a unique challenge for automakers and dealers in 2024.
In recent months, EV sales have slowed as compared to previous years. According to S&P Global Mobility, the U.S. registered about 25,000 more battery electric vehicles (BEV) from January to April 2024 compared to the same period in 2023, whereas the increase was about 137,000 units in the same months from 2022 to 2023. Meaning, even if EVs have slowed a bit in recent months, they’re still on the rise and reaching new heights.
Despite some customer hesitation, S&P Global Mobility’s June 2024 light vehicle forecast predicts BEV vehicle production to continue at a fairly aggressive pace. By 2036, S&P Global Mobility forecasts the U.S. to be the third-highest BEV producer, with 75% of light-vehicle production expected to be BEVs.
To navigate this evolving landscape, it’s crucial for dealerships to have a clear plan and focus on the factors within their control.
As EV sales continue to grow at a slower pace, dealerships must remain adaptable and resilient, leveraging strategic planning to manage inconsistent customer demand. By proactively adapting their strategies, dealers can not only overcome current market challenges but also position themselves to capitalize on the anticipated future growth in the EV market.
Dealership Strategies for EV Sales
As the EV market continues to grow, a dealership’s investment in infrastructure is critical to ensuring it is well-equipped to handle future sales and the servicing needs.
Beyond adding EV-specific facilities and chargers in their sales and service departments, dealers need to ensure their teams are equipped with the tools and knowledge they need to succeed in a changing market.
By focusing on customer education, hands-on training, understanding incentives and leveraging predictive technology, dealerships can build a strong foundation for sustained growth in EV sales.
Educating Customers to Overcome Skepticism
One of the key challenges in promoting EVs is addressing consumer skepticism.
Some prospective buyers may have common concerns about the range, available charging infrastructure or the overall cost of owning an EV. Dealers can help combat these misconceptions by prioritizing customer education with direct, personalized and proactive communications.
Through tailored, transparent and consistent communications, dealers can help address customers’ concerns, using potential objections as opportunities to educate and engage buyers on the benefits of purchasing an EV.
For example, by providing clear, factual information and answering questions confidently, sales teams can help customers understand the advancements in battery technology that help extend range, the growing network of charging stations, and the long-term cost savings from reduced fuel and service expenses.
Hands-on Sales Team Training
For dealership sales teams to effectively sell EVs, having hands-on experience is crucial.
By spending time driving and interacting with electric models, salespeople can develop a deeper understanding of each product and its unique selling points. This firsthand experience is invaluable in bridging the knowledge gap that often exists between sales staff and consumers, translating to more authentic and enthusiastic customer interactions.
When salespeople are confident and well-informed, they are better equipped to guide customers through the EV buying process, addressing concerns and highlighting the benefits with genuine enthusiasm.
Understanding EV Incentives
While the pricing gap between EVs and internal combustion engine (ICE) vehicles is tightening, EVs still typically cost more to purchase. According to data from Kelley Blue Book, the average transaction price for EVs in June 2024 was $56,371 vs $48,644 for gas-powered vehicles.
To help offset these costs, sales teams need to understand and be able to enable customers to maximize available incentives, including those outside of OEM incentives and federal tax credits.
In the U.S., the states that offer incentives have differing programs, which creates variability in the impact of state-level programs. For example, tax credits are available in Colorado for the purchase or lease of new EVs and plug-in hybrid EVs.
Understanding and helping customers identify incentive and tax credit opportunities is key to assisting them in navigating the EV buying journey.
Identifying Prospective EV Buyers
To identify and engage potential EV buyers, dealers should start by analyzing their existing customer base. By understanding their customers’ purchasing habits, dealers can determine which of their customers are the most likely to be interested in purchasing an EV and tailor their approach.
Predictive marketing technology is key to this process, enabling dealers to engage and convert customers based on their unique buying preferences. For example, Mastermind’s EV Behavior Driver helps dealers identify customers who are most likely to purchase an EV and provides personalized talking points tailored to each buyer’s vehicle ownership, demographics and other relevant factors.
As the EV market continues to grow and shift, staying ahead of trends and proactively adapting to changes will ensure long-term success in the rapidly expanding market.
Dealers who invest in EV-specific facilities and chargers, educate their customers to overcome skepticism, and provide their sales teams with hands-on experience will be better positioned to capitalize on the growing EV market.
By focusing on these strategies, dealerships can address current market challenges and position themselves as leaders in the evolving automotive landscape.
Want to learn how Mastermind can help your dealership identify and engage future EV buyers? Request a demo.