If you’ve been following the news lately, you’ve probably noticed that electric vehicles or EVs have been in the headlines quite a bit. There have been many new announcements about the future of the automobile industry and the adoption of EV cars.
Here in California, a law was passed banning the sale of new combustion engines after 2035. GM recently announced they plan to be carbon neutral by 2040 and increase the sales of EV vehicles to 40% by 2025.
Just this month, the Biden administration unveiled a plan to boost EV sales with $100 billion in consumer rebates. They plan to commit another $15 billion to build 500,000 new EV charging stations. It’s looking like the future of the automotive industry is electric.
Many of our wholesale lubricant customers are quick lube businesses. Announcements like these may have you worried. Electric vehicles have significantly lower maintenance costs and don’t require regular oil changes. How will the widespread adoption of EV vehicles affect your business? First, don’t panic. Here’s a list of five reasons EV adoption may take longer than predicted.
- Significant change is still decades away. Despite the landmark announcements from major companies and the government, most industry experts predict the gas engine is here to stay for some time. EV global passenger vehicle sales are expected to hit 10% by 2025, 28% by 2030, and 58% by 2040. Here in the US, the adoption of EVs is expected to be much slower. We’re expected to only account for 14% of EV sales by 2030.
- EV adoption will be dependent on the region. We all know that consumers driving habits are different across the country. EV adoption will likely vary, with urban areas making the change more quickly than rural areas. We can see from the current sales of EV vehicles that states like California, Washington, and Oregon lead the way for EV adoption. Here in our home state of California this year, 8 of 100 new vehicles purchased were electric.
- Consumers are still going for larger vehicles. It will take time for consumer attitudes to change, and right now, consumers want larger vehicles like trucks and SUVs. Only five years ago, half of the vehicles sold in the US were passenger cars. Now it’s one-third. Crossovers and SUVs are still widely popular, and there are only a few EV options. Until more EV options are available, consumers will be slow to make the change.
- Charging station and battery range availability is still a major issue. One of the biggest drawbacks to EV adoption is the availability of charging stations across the country. It’s estimated there are only 22,000 stations in North America, compared to 168,000 gas stations. The average range of an electric vehicle is only 190 miles before it needs a charge, making it difficult to use for long road trips. Without a significant increase in battery life and charging availability, many consumers may choose to forgo electric vehicles.
- EV vehicles are still more expensive upfront. Some estimates place the price point as nearly $20,000 dollars higher for EV vehicles than gasoline-powered vehicles. Over time, the initial price point of an EV vehicle diminishes as the fuel and maintenance costs are significantly lower. Still, the initial cost makes it difficult for many consumers to take the plunge.
Despite the reasons we’ve outlined, change is coming. EV adoption will begin to become more commonplace. It just may not happen as fast as we think. But that doesn’t mean you can’t be prepared. If you start now to make changes and offer new services at your quick lube business, you may handle the coming wave of EV cars. Here are five recommended changes that quick lube businesses can make to prepare for electric vehicles.
- Shift away from oil changes. Oil changes are a core part of the quick lube business, but EV cars don’t need them. Electric vehicles require far less fluid changes and inspection than gasoline-powered ones. Start to focus more on tire rotations, brake, filters, and battery services instead.
- Offer battery swapping services. In China, one area of EV maintenance that has seen increased popularity is battery swapping. The idea is that consumers can pull up to a shop and get their nearly depleted battery switched out for a fully charged one in five minutes when they are on long road trips. The idea could be very popular here in the future for consumers on long road trips. Quick lube shops already have the lifts to make this type of maintenance a reality.
- Start now to learn more about EV maintenance. Even though EV vehicles may be easier to maintain and have longer service intervals, they’ll still require regular checkups. Shops that put in the time and energy to learn more about servicing these vehicles will be ahead of the curve when widespread adoption comes. Start now to embrace EV vehicles and keep EV supplies in the shop. Valvoline recently released a whole line of fluids specially designed for EV engines, including EV heat transfer fluids, drive system fluids, brake fluid, and EV grease. Start stocking your shop with these supplies to help customers with their EV vehicle maintenance needs.
- Offer charging stations at your shop. Adding a charging station to your shop is a great way to bring customers in. While customers wait for their vehicle to charge you can offer basic routine maintenance like filter changes, wiper changes, headlight service, inspections, or even windshield treatments.
- Offer options for hybrid vehicles too. The widespread adoption of EV cars isn’t going to get rid of hybrid vehicles completely. Many customers will still want the option of a gasoline-powered engine. Learn more about hybrid vehicle maintenance and issues, and make sure your shop has the tools to offer service for hybrid vehicles as well.
The automotive industry is changing, and so are consumer attitudes. EV car adoption is coming. The best way to protect your quick lube business is to prepare for these changes by investing in training, technology and by offering new services to your customers. The shops that are willing to make these changes and pivot their services to appeal to EV customers will survive the coming change. As a southern California bulk fuel and lubricant supplier, we are always here to help!