01 Apr Utilities and Dealerships Go Together Like Chocolate and Peanut Butter
BY MADDIE SLIGH, D+R INTERNATIONAL
Electric vehicles (EVs) adoption is accelerating, with new models coming out, consumer interest increasing, and utility and state incentives expanding. However, EV adoption might be limited in the near term by significant misalignment between utilities and auto dealerships. Both groups will benefit from effective coordination around incentives and customer engagement, but utilities don’t typically have relationships with the dealerships in their territory and may have different perceptions about EV technology and customer preferences.
Utilities interested in expanding EV adoption in their territory need to stay at the forefront of these discussions, developing their auto network and building mutually beneficial relationships with their local dealerships.
Engagement and Education
Utilities have started to gain impressive traction through dealership engagement. Auto dealers located in and around Rappahannock and Delaware Electric Cooperatives’ service territories in Virginia and Delaware are extremely interested in collaborating with the local utilities. D+R recruits and vets these dealers to be included in the cooperatives’ ChooseEV dealer directories, a resource to help utility members and customers to find and buy EVs that will launch later this spring.
As we spoke to dealerships in our clients’ territories, it became clear that there is a gap in knowledge about EV technology and a range of experience levels when it comes to working with utility rebate and incentive programs. Utilities can address these disparities by engaging with dealerships to enhance existing efforts to educate staff and customers on EV technology and incentives and help other dealerships provide that same level of commitment to EVs.
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Making Introductions
Regional auto dealer associations are great resources for utilities looking to foster local dealership relationships. These associations are exceptionally helpful in conducting dealership outreach and in gauging interest among members when it comes to utility partnerships. We asked John O’Donnell, president and CEO of Washington Area New Automobile Dealers Association (WANADA), how utilities can help dealerships advance the sale of EVs.
“[In locations] where the public power cooperatives have partnered with dealerships to promote EV sales through rebates, there is a mutually beneficial relationship between the co-op and dealerships that ultimately benefits consumers and the environment. Dealerships can help utility companies by agreeing to a specific number of EV placements in prominent locations in dealerships, by proactively training staff on how to sell EVs, and by providing utilities with marketing and branding opportunities through their stores.” – John O’Donnell, President & CEO of WANADA
John’s perspective perfectly highlights examples of small tweaks auto dealers can make to their business practices that will result in increased EV sales. As vehicle manufacturers expand their release of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), it will be increasingly important for dealers to know how to comfortably and effectively sell EVs. Utilities serve as trusted educational partners for dealer customers on incentives and EV technology. They can provide useful information on topics such as TOU rates, incentives and rebates, charging station installation, and fuel savings, all of which can boost customers’ confidence in purchasing an EV.
Dealership engagement should be sure to target used EV dealerships in addition to new car dealerships. Used EVs are more affordable, making them a more viable option for those who cite cost as a barrier to adoption. There are exceptional used EV dealerships across the country, such as Platt Auto in Oregon, that are using their EV knowledge to leverage sales. In addition, the existence of used EV rebates in states such as California and Oregon reinforces the value of used EVs in furthering widespread EV adoption.
Utilities Have the Power
Dealer partnerships with utilities are proving to be effective across the country and playing a key role in utility driven EV expansion. If your utility is interested in expanding EV adoption, you can become the go-to resource for local dealerships for up-to-date incentive and technology information. Not sure where to start? D+R can act as a steward in utility/dealer relationships. Check out D+R’s DRIVE EV Market Services for a full list of our innovative dealer services.
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