2 Min ReadSeptember 12, 2023

Talking About a Different EV Bubble

Talking About a Different EV Bubble

The elevation of electric vehicles (EVs) to the top of the automotive food chain has been taking its time. On some sides, it seems like the inevitable is already here while on others, we still seem far away. Some say that we’re in an EV bubble that may lead to a major bump in adoption.

That’s why CDK Global spends so much time researching this issue, and in our latest study EV Confusion Carries On, our team uncovered that not only are gas and hybrid car shoppers unsure about the benefits of EVs but even those specifically shopping for EVs are missing the mark.

One of the most interesting findings, in my opinion, was just how insulated each type of shopper was in their own vehicle world. While it wasn’t a surprise that 84% of EV shoppers knew a friend or family member who owned an EV, that number dropped to 54% for hybrid shoppers and was just 37% for gasoline-powered car shoppers.

Talking About a Different EV Bubble

This is possibly the key factor in EV adoption as 82% of these EV shoppers said friends and family members influenced their purchase decision.

Let that sink in for a minute and then go back to those other two groups of shoppers.

When I heard just how isolated gas vehicle shoppers are from people with different driving experiences, it reminded me of the country’s polarized political climate. Or to take it to less of a hot topic: sports fans. If you don’t know many golfers, you’re probably less likely to play golf or tennis or pickleball. This may explain the pickleball phenomenon.

Also, these siloed drivers aren’t all in the states you think. Yes, there are far fewer EVs registered in Montana (3,000) than California (903,000) but even in one of the most populated states of Pennsylvania, there are only 47,000 EVs registered. That means 0.4% of the population owns an EV versus 2.3% of Californians. And Pennsylvania is slightly ahead of Michigan where the domestic auto industry is centered and determined to bring EVs to the masses.

The dealer has always been a key fixture in whatever community they’re based whether that’s a mountain town in Montana or right outside Pittsburgh or Philadelphia. And as our new EV study shows, the dealer is where these siloed shoppers could get their first hands-on exposure. A sales rep might not replace that friend or family member in terms of influence, but they’ll have keys to an EV at hand. They’ll know the range, the benefits, the maintenance schedules and, of course, the cost.

If EV adoption is the goal, the American car dealer is going to be the one to burst that bubble.

Read More
EV Confusion Carries On
Plug-In Hybrids Remain a Solid Bridge to EVs

Share This

Barb Edson
By Barb Edson
EVP, Chief Marketing Officer

Barb Edson is executive vice president and chief marketing officer at CDK Global.

Barb and her team focus on delivering successful marketing and commercial strategies that help strengthen connections across the automotive retail ecosystem for CDK, its dealer and manufacturer customers and the consumers they serve. She has more than three decades of business strategy and marketing experience in software and technology.

Recent Insights

Converting Used Car Buyers to New.

Converting Used Car Buyers to New

It happens every day: A customer shows up on your lot with a saved listing for a specific pre-owned vehicle....
4 Min ReadSep 4CDK Global
Car Buyer Rush Leaves Mixed Results at the Dealership

Car Buyer Rush Leaves Mixed Results at the Dealership

Car dealers are seeing a return to normal in terms of how buyers are finding the purchase process easy but...
2 Min ReadSep 2David Thomas
How Machine Learning Helps Dealerships Price and Manage Inventory.

How Machine Learning Helps Dealerships Price and Manage Inventory

Over half of dealers struggle to price used vehicles with confidence, and 62% say pricing prevents them from achieving financial...
3 Min ReadAug 28CDK Global
How Dealership Tech Training Improves Vehicle Delivery Experience and Customer Satisfaction.

How Dealership Tech Training Improves Vehicle Delivery Experience and Customer Satisfaction

Vehicle delivery isn't the end of the purchase process; it's the beginning of ownership, and it's essential that this journey...
4 Min ReadAug 26CDK Global
Are Dealers Moving to Where the Car Sales Are?

Are Dealers Moving to Where the Car Sales Are?

As we approach the midpoint of the 2020s, the U.S. auto retail landscape looks markedly different from just five years...
3 Min ReadAug 21CDK Global
Consultants Help Dealers Identify Improvements  to Increase Efficiency and Profit

Consultants Help Dealers Identify Improvements To Increase Efficiency and Profit

There is no denying the significant investment car dealers make with the software that runs their stores. But most dealerships...
4 Min ReadAug 19CDK Global
Leasing’s New Life as Monthly Payments Get Squeezed.

Leasing's New Life as Monthly Payments Get Squeezed

Leasing isn’t new. But as the market tightens and sale prices and MSRPs begin to rise there is renewed interest...
3 Min ReadAug 14CDK Global
C D K Research Uncovers the Truth About E V Ownership in 2025.

CDK Research Uncovers the Truth About EV Ownership in 2025

Electric vehicles have been a hot topic in the industry for nearly a decade. Today, the end of EV incentives...
2 Min ReadAug 7CDK Global
Four Requirements for Modern Dealer Appraisal Software in 2025.

4 Requirements for Modern Dealer Appraisal Software in 2025

Appraisals are an essential step in dealership processes. Even in today’s market where many dealers are offering top dollar for...
4 Min ReadAug 5CDK Global
Car Buying Process Rebounds in July

Car-Buying Process Rebounds in July

June saw the biggest drop and lowest score in the history of our Ease of Purchase scorecard. Luckily, there was...
3 Min ReadAug 4David Thomas