Dealers face EV revenue loss

Electric cars are cheaper to service, but what does that mean for retailers?

£10 Difference in cost of a monthly service plan (Nissan Leaf vs a diesel car)

Concerns are growing among motor dealers that the reduced servicing and maintenance requirements of electric cars, plus the high cost of training and equipping technicians, will affect the profitability of workshops and diminish the aftersales experience for customers.

Evidence from leading fleet companies suggests that due to their simplified mechanicals, lightly used braking systems and higher levels of reliability, the service, maintenance and repair costs of EVs are around half those of petrol and diesel vehicles. In addition, most electric cars have longer service intervals, while some, such as certain Audis, have no limitation on mileage during each two-year scheduled service period.

Manufacturers make maintenance savings a key part of their electric car offer to customers. Nissan, for example, claims owners can cut their costs by 40% compared with an ICE vehicle. Explaining the savings on its website, it tells customers: “No more oil changes and no tailpipe emissions means no more emissions tests.” The savings are highlighted in its service plan, with monthly instalments for a Leaf being £13.99 compared with £19.99 for a petrol model and £23.99 for a diesel.

Concerned by EVs’ reduced servicing requirements and the consequences of falling aftersales revenue, the National Franchised Dealers Association (NFDA) has established an aftersales working group to monitor changes within its members’ aftersales departments. It plans to publish its findings later this year.