5 Min ReadJuly 29, 2024

Enthusiasm for Selling EVs Closely Tied to Geography

Enthusiasm for Selling EVs Closely Tied to Geography

A surprisingly large number of U.S. auto dealers say their Sales staff aren't enthusiastic about selling EVs, according to the recent CDK Dealers Face the EV Transition white paper. A total of 250 dealership leaders in regions across all 50 states took part, and a startling 49% said their Sales teams weren’t excited at all about selling EVs. The differences between regions were also clear.

EV Chart 2

Far more dealers in the Pacific region (46%), for example, said their sales staff were moderately or very excited to sell EVs, compared to 25% in the neighboring Mountain states. The most pessimistic region was East South Central with only 12% of dealers in Alabama, Mississippi, Tennessee and Kentucky saying their Sales staff were excited in any way about the prospect.

It should come as no surprise that the Pacific region (which includes EV-loving California) scored high on excitement. Yet, even there few were "very excited."

So, outside of EV hotbeds, why are a large number of dealerships uninterested in selling EVs? Many concerns come down to simple geography. Whether due to extreme swings in temperature, mountainous terrain or long distances between communities, dealers in large swaths of the country have significant reservations about selling EVs.

One dealer in Montana put it bluntly, "We live in a rural area with large distances between towns … It's just not a viable alternative to ICE."

Another dealer in North Dakota pointed to the arctic climate as the kiss of death for EVs. "It's primarily a range issue, which is always compromised when the heater is on full blast. If someone had to pull off the interstate due to inclement weather, they’d freeze to death at a rest stop.”

These are just two examples of why geography can't be left out of any discussion about EV adoption. But what also can't be left out is lifestyle. An EV may be the wrong choice for long-distance commutes in North Dakota but is the right choice for grocery runs and taking the kids to school. If salespeople receive training on EV benefits, and get back to the basics of customer needs assessments, will enthusiasm for selling EVs ramp up?

Can EV Training Get Salespeople Excited?

It's hard to get excited about new technology that you don't understand or that's disrupting the status quo. Training alone won't breed excitement. You need energy and authenticity to sell. But training does breed confidence and knowledge, which can foster excitement over time. CDK asked about EV sales training and the results were revealing.

EV Training Sales

EV Sales Enthusiasm

Nearly four out of five (78%) say their staff is moderately to extremely trained with 27% saying their teams were moderately to extremely excited. But at the regional level these numbers moved in tandem.

Sales staff training was significantly high in New England, for example, with more than eight out of 10 (83%) very or extremely trained. And New England ranked first (25%) when it came to being very excited about selling EVs. The East South Central region, which was last in excitement over selling, reported only 24% of salespeople were very or extremely trained.

It's difficult to make a direct correlation, but it does seem that training salespeople on EVs translates to more passion for selling these vehicles.

Salespeople Make a Big Difference

Despite the pessimism many dealers feel about the electric future, the market continues to grow. Some experts predict a second, significant wave of shoppers ready to consider buying an EV is poised to begin entering the market in the second half of the decade.

Dealers across the U.S. who don't want to miss out on EV-curious customers willing to buy will have to train Sales staff to be educators who help shoppers decide if and how EVs fit into their lifestyles.

Salespeople first need to understand how the technology works; the benefits of their OEM-specific vehicles; how to navigate tax incentives, range, charging options and maintenance details. Customers will have questions, and a CDK study of current EV owners shows that it’s the salesperson who they trust to provide answers.

The Needs' Assessment Reigns Supreme

The second step is getting back to the basics of the customer needs' assessment. This practice dropped by the wayside when vehicles were being sold practically before wheels hit the ground but when selling EVs, it's essential. That's because an EV requires a whole-new way of driving. One where available charging stations and range have to be considered before leaving home.

A needs' assessment should include but isn't limited to how far the customer drives per day on average, geographical details such as extreme heat or cold that can reduce range due to intensive use of AC or heating, available public charging stations, and if the customer can set up a personal charging system at home.

When well-trained salespeople take the time to educate customers and fit a vehicle to lifestyle, they can be a significant factor in transitioning drivers to EVs. The CDK study of EV owners found that 74% were considering a gas or hybrid car before buying an EV. The salesperson helped sway over half (54%) to buy an EV in the end.

Any way you look at it, geography is a significant factor in how positive or negative salespeople feel about selling EVs. Yet, with the market continuing to grow, and a predicted second wave of EV-curious shoppers poised to be in play by the second half of the decade, it's smart for dealers to ramp up EV training and get salespeople back to the basics of customer needs’ assessments.

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CDK Global
By CDK Global
Staff

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