EVs are facing relatively high recall rates which could help dealers make up for a revenue shortfall from the models needing less servicing, according to ADS.
The data company said its research showed an average annual workshop revenue shortfall of £175 per EV, compared with ICE vehicles. It said that based on current EV market share, this difference – attributed to EVs having fewer serviceable wear-and-tear components – represented a total service value reduction across UK dealers of £210 million.
However, it also found that EVs were accounting for one in five recalls, despite only making up one in 18 vehicles currently on the road.
ADS said this offered dealers more chances for direct customer contact, which it said was an overlooked aspect of profitability and customer retention.
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Need for customer data management highlighted
ADS added that achieving this would require accurate customer contact records and a focus on fulfilling recalls. It said millions of recalled cars remained unrectified, and that up to 75% of dealer customer contact databases contained errors.
Jon Sheard, operations director of ADS, said: “Our analysis is good news for dealers who are confronting fewer organic opportunities for customer contact between services.
“For those dealers who manage their customer data most effectively the disproportionately high rate of EV recalls is a golden opportunity.
“Just as proactively offering more frequent tyre rotation, due to the difference in weight and torque for EVs, is an important customer contact opportunity for dealers, increased recall appointments bring another welcome reason for customer contact.”
Sheard said that dealers looking to take advantage of this would need a clear and timely view of recall data alongside accurate customer data.
He said: “Dealers who take advantage of data-cleansing and updating services consistently report significantly increased revenues through improved customer retention.
“Our analysis shows that EV recalls provide increased opportunities for meaningful customer contact, which will help to claw back profit that would otherwise be increasingly eroded by the transition to electric.”