We have 130+ day supply on EVs at the brand level. We've taken in more EV trades than we've sold. Our service lane EV volume is not moving the needle. Less fluids, less scheduled maintenance, simpler drivetrains. I'm not anti-EV. I'm pro-math. The dealers who leaned hard into EV sales over the last two years and didn't diversify their service base are feeling it now. Fixed ops has always been the floor under a bad sales month. That floor is thinner on an EV-heavy lot.
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Year one of EV ownership is…
Year one of EV ownership is low service volume and still under warranty. Year two and three is where the pattern becomes visible in your fixed ops numbers. Stores that pushed EV sales hard in 2022 and 2023 are starting to see their service mix shift in ways that hurt the absorption rate calculation. Collision and body work is still comparable to ICE but the routine maintenance cadence is genuinely different and the parts margin on EV-specific components is not offsetting the loss of oil change volume and scheduled services. The dealers who built their fixed ops staffing model around an ICE volume that is now partially EVs are overstaffed relative to actual service demand and that is a cost problem most are not addressing openly yet.
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