EV Service:
Today andTomorrow

CONNECTIONS THAT MOVE YOU

Table of Contents

Overview
The electric vehicle revolution is coming. And as CDK Global continues
to study the trends around the technology, its impact on the Service
department continues to be a top concern throughout the industry —especially for store leadership.

03

06
10

OVERVIEW
The future of the Service department has been a top
concern whenever discussing the transition to electricvehicles (EVs). Yet, there’s been very little investigation
into what’s happening on the ground and what’s
expected down the road from those in service
leadership, which this research looks to uncover.

WH E R E EV S E R VI C E STA N D S TO DAY
The numbers are clear. There aren’t a lot of EVs
coming into dealership Service bays. But today’s
Service department is ready now despite the current
small crop of customers.

A ROSY FUTURE FOR SERVICE?
Despite their quick response to the entry of EVs, dealers
aren’t enthusiastic about the future in terms of service
even though nearly all of them say they expect to makemore money in the Service department with EVs.

14

S E R VI C E STA F F I N G LO O M S L A R G E R

To get to the heart of what’s happening in Service

They’re living with EVs, and so far, just slightly

WITH EVS ON THE HORIZON

departments today — and what’s expected

more than half (53%) feel positive about the

CDK Global has tracked the importance of Service
staffing for years. This study reveals that there are
unique, new obstacles for dealers when it comes tostaffing for EV service.

tomorrow — we interviewed nearly 200 leaders

process. Especially positive is their view ofwith a direct understanding of EVs’ impact

the future: they do believe EVs will increaseon this vital profit engine for the dealership.

customer retention as the dealership will be theEvery respondent has either begun servicing

16
18

EVs or is preparing for it in the next two years.
PREPARING FOR WHAT ’ S NEXTThe data illuminates areas where dealers need tofocus as the EV trickle becomes a steady stream ofService volume.

ABOUT THIS STUDY

advanced vehicles maintained and serviced.

But 99% of those surveyed had at least a portion

This wasn’t the only compelling discoveryof their Service staff already trained on EVs.

we found as we investigated the current
and future state of EV service.

How Dealers Feel About the
Introduction of EV Service

53%
Positive

Customer Retention
Expectations

22%

Negative

25%

Neutral2

primary option, if not the only one, to have these22%

Decrease

40%

Stay the same

37%

Increase

Customer retention with the introduction of EV service
is expected to stay steady or increase in the future.

3

DEMOGRAPHICS

Total Participants

188
ROLE

DEPARTMENT

Director, Manager
or Supervisor

77%

145

Executive Leadership

23%

43

Administration

22%

42

Parts

27%

51

Service51%

95

EV SERVICE DEPARTMENT STATUSROOFTOPS

4

COMMUNITY

Currently service EVs

85%

159

Within 6 months

7%

13

1 to 2 rooftops

41%

78

Urban

28%

52

3 to 5 rooftops

24%

46

Suburban

40%

76

6 to 10 rooftops

10%

19

Rural

29%

55

Within 6 months to 1 year

6%

11

11 to 15 rooftops

7%13

Prefer not to say

3%5

16 rooftops or more

12%

22

Within 2 years

3%5

Prefer not to say

5%

10

5

Where EV Service Stands Today
EV adoption is growing and the curve seems to be getting steeper, with

Investments

current market share hovering around 7%. However, nearly half (if not more)

When it comes to charging stations, 88% saidof all EV sales are still Tesla’s two most-popular models, the Model 3 andthey have at least one charging station at theModel Y. In our survey, respondents said roughly 2.5% of their dealerships’
new unit sales were fully electric models, which tracks with industry data.

88%

Have charging stations
at the dealership. Outof those 88% ...

dealership. Of those, 32% said there’s at least one
in the Service department, and a healthy 64% said
they have more than one charging station in theService department. Most of the chargers, 53%, arelevel 2 but 44% have level 3 fast chargers installed.

Similarly, this group said they saw
nearly identical numbers come into
the Service bay with 2.4% of repair
order (RO) volume coming from
EVs. It’s not going out on a limb to
say this sliver of business is quite
small. Yet, these stores have alreadyinvested heavily to address current

2.5%

Percentage ofdealerships’ new unit
sales coming from EVs(on average)

2.4%

64%

5%

in the Service

different part ofdepartment

the dealership

Charging is in a

Multiple chargers

Percentage ofoverall RO volume
coming from EVs(on average)32%

One charger
in the Service

and future EV service customers.

department

NACS
3% Tesla
Charger

Most common
charging systems

6

44%

53%

Level 3

Level 2

7

Service departments are taking
on most of the investment burden
when it comes to installingcharging stations.

57%

Much More Than Charging

40%

3%

Getting EV-ready in the Service department requires

on sale right now is the GMC Hummer, with a GVWmuch more than charging stations. Over half ofof 10,500 pounds. More common EVs, like the Ford

respondents (54%) said they have separate bays

Mustang Mach E and Volkswagen ID.4, have a GVWdesignated for EVs. Others left their bays flexible,

between 5,000–6,000 pounds. Comparable gas

able to handle either EVs or traditional gasoline-

models, like the Ford Bronco Sport or Volkswagen

powered cars because “it will be a while before that

Tiguan weigh 500-1000 pounds less.

bay is full daily with EVs.”

Service bays design

100% investment by the dealership

Partially sponsored by the OEM

Getting There Wasn’t Easy
This level of charging station penetration wasn’t
easy. We heard from many who struggled witheverything from regulations to equipment
shortages to their own infrastructure. Not only
were there long delays receiving the chargers
and related equipment, but some had issues
finding qualified electricians to install them.
One respondent explained they had to wait six

Fully sponsored by the OEM

54%

Have separate Service
bays for ICE or EV

But 59% of those who did create unique service

What Service departments did have to invest in wasbays said they haven’t needed to upgrade theira substantial amount for tools and safety gear. Eighty

lifts to accommodate heavier vehicles. The large

percent of respondents said they had to invest inbatteries that today’s EVs require add substantial

specialized diagnostic tools to service EVs.

weight compared to their gas counterparts. Most

A slew of new safety equipment is also now standard

lifts can handle 6,000 pounds in terms of grossin Service departments, like unique gloves and boots,

vehicle weight (GVW) with many far exceeding

voltage meters, insulated workbenches and tools,that to over 10,000 GVW. One of the heaviest EVs

signage, Class D category fire extinguishers and,perhaps most chilling, a fiber rescue pole to separate
someone from a live wire incident.

months for the right labor to become available.

89

A Rosy Future for Service?
We’re still in the early stages of selling and servicing EVs at scale. That 2.4%of overall R0 volume statistic certainly seems to prove that. But EVs will hit

RO VolumeEV

100% at some, perhaps very distant, point in the future. That understanding
puts a laser focus on how much volume and revenue Service departments
0%

expect to see in the coming years.

Decrease

What might be somewhat surprising to thefor service will be. Only time will tell.” That phrase

status quo is that a majority see a positive“time will tell” came up a few times. As did the concept

outcome on the horizon — when you ask themof the inevitability of EVs “even if you don’t want it to.”to get specific. When we questioned thembroadly about how they feel, sentiment diverged
drastically from what they expect the bottom
line to deliver.

12%

6%

Stay the same

11%
Moderately
Increase

Dramatically
Increase

EV RO
VolumeIncrease

Warranty Service Volume
EV

Overall

0%10%Decrease

89%

58% 59%overall revenue, Service and store leadership predict

How dealers feel about the
future of EV Service

26%

18%

No matter how they felt, in terms of volume anda very significant rise as more EVs pull into the drive.

88%

62% 65%Overall

11%

31%

19%

Stay the same

13%
Moderately
Increase

Dramatically
Increase

EV Warranty
VolumeIncrease

To be clear, everyone should expect more EV volume, but 72% of respondents see all warranty
volume increasing as well, and 76% see total RO volume increasing in their stores over the
next three years. That’s an overwhelmingly positive number, with only 10% seeing a decrease

42%

32%

in warranty service and 6% seeing a decrease in RO volume.
Volume is one thing, but what about revenue?

Negative

The number might be even more promising.

Positive

Service Revenue

26%

EV

64% 68%Overall

Neutral22%

When we asked simply how they felt, only 42%
of respondents had a positive outlook about
the future of service when it comes to EVs. And
nearly a third (32%) had a negative outlook.
One store executive pointed to the unknown,“Dealers have no real idea of what the demand10“Dealers have no realidea of what the demand
for service will be. Only
time will tell.”

9%

13%

Decrease

Stay the same0%78%
14% 11%Moderately
Increase

Dramatically
Increase

EV Service
Revenue
Increase

Nearly four out of five respondents (79%) expect to see an increase in overall revenue in the next
three years. Only 9% think there will be a drop in revenue in that period. When we look at EVs
currently, almost the exact same number (78%) expect an increase in revenue there as well.

11

Types of Expected EV Service

When asked how often customers will come in to service their EVs, our respondents expect it to be early
and often. A robust 40% of those we surveyed anticipate EV owners will come in every six months. And

What type of work is expected to drive this revenue for EVs? Not surprisingly,
the number-one issue that’s expected can’t be solved with a wrench. Thirty-eightpercent of respondents said software issues will be the most common service
request from customers.
But even though it didn’t rank at the top, some believe tire maintenance will bevital. “When it comes to EVs, tires are the new oil change,” said one dealership.

nearly half (48%) think they’ll be in at least once a year.
These significant numbers might help explain the higher revenue service leaders are expecting as more
EVs are sold. The higher level of technology and software seen in new EVs, along with a slew of recalls inrecent months, is likely why they expect visits to be so frequent. And even without oil changes, there areplenty of other reasons for EV owners to visit the service lane.

How Frequently EVs Come in for Service
48%
40%

16%

Hardware failure

6%

38%

Software
Issues

Most
CommonService
Concerns

16%

Replacementof wiper blades

Once per
6 months

Once per
12 months

Once per
18 months

Tire
maintenance

18%

Technical issues
with display system

Once per
24 months

2%Less than onceper 24 months

Most EVs’ recommended service schedules include

to each axle on their large dashboard screens.

at least annual inspections as well as tire rotations.

This will help the owner connect the dots to

Since many of today’s EVs are equipped with motors

the need for a rotation.

on both axles and different amounts of torque

18%

4%

going to each, rotating tires will be an even more
important service for EV owners. A Ford Mustang
Mach E recommends a rotation annually or every
10,000 miles; Hyundai’s Ioniq6 is every year or 8,500
miles; and the very large GMC Hummer EV pickup
recommends a rotation every 7,500 miles that isn’t
tied to a time frame at all.
Service departments can create materials that

Some EV service schedules also clearly statevehicles shouldn’t exceed a year or 10,000 miles
between services.
These findings on frequency, along withfrustrations that users of new technology often
have, should inspire stores to reevaluate their
waiting areas and how they update customers,
in-store or offsite, on the status of their vehicles.

illustrate the why in a similar way that the cars
themselves will often show energy flow from motors

1213Service Staffing Looms Larger
With EVs on the Horizon
Service Managers have been concerned about staffing shortages and retention
for years, if not decades. With the oncoming EV work inevitably on the way, it’s

Difficulty of persuading existing
Technicians to receive EV training

no surprise that training Technicians on the technology is top of mind.

Currently, most dealers (85%) are operating with less

Even more, 70%, feel it’s difficult to recruit

than half of their Service Technicians trained on EVs.

Technicians that already have EV experience.

Considering just 2.4% of ROs are for EVs, this isn’t
an unsound number — for today. And 64% of thosecurrently servicing EVs say Service scheduling hasn’t
been impacted due to staffing levels. But preparing

31%

27%

Difficult

NeutralEasy

And while Service heads are always open to hiring
new talent, 87% of all respondents preferred to train
their existing staff on EVs so they could service bothfor the future isn’t easy, it seems.

gas and electric vehicles. This preference is meeting

More than half of respondents (56%) felt that training

persuade their Technicians to receive EV training.

their current Technicians on EVs was difficult.

42%

resistance head-on, with 42% saying it’s difficult to

About 98% of the training is provided by the OEM.
And only 9% of respondents said they added
additional training that they either sourced themselvesor through a third party. As automakers look to electrify

Just over half of
respondents have20%of EV-trained
Technicians or less14

their lineups, they’ll need to continue training and,according to our respondents, improve it as well.
Only 59% of those surveyed were satisfied with OEM
training, with a few commenting that it was “poor.”
While recruiting new Technicians is difficult today,
there’s some hope that the tech-forward halo EVs
have in mainstream society will rub off on the“Only 59% of thosesurveyed were satisfied
with OEM training,with a few commentingthat it was ‘poor.’”sometimes negative stereotype of working in aService department.

15

Preparing for What’s Next
If there’s one piece of advice that rang true throughout the survey, it’s that
preparing and planning for EVs isn’t optional. Reluctant or not, Service
department leadership is clearly an active participant in transitioning to anelectric future. Each may be at a different stage as the trickle of ROs takes time
to become a steady stream, but they’re more than aware of the inevitable.

2

Incentivize EV Training

It became clear that convincing current staff totake on EV training wasn’t an easy process. If theService team needs to grow now, incentives for
those who take on the training — with either salaryconsiderations, a one-time bonus or additional
vacation days — may be necessary. Maintaining

There Were Also a Few Takeaways That Became Clear:1enough trained staff will become more importantas more models and volume hit the market.

Get Into the Tire Business

EVs will certainly go through more tires than youraverage gas car, but dealerships should focus
on the intervals for tire rotations to keep service
customers returning to the Service department.
And even though this is an area dealerships
won’t be able to claim with exclusivity — unlike
warranty claims and recalls — the concept thatdealership Service Technicians are trained on
all aspects of EVs should further reinforce thedealership advantage, even for tires.

3

EVs Could Be a Net
Positive for Service

The fear of reduced Service revenue has been
the earliest trendline around EVs becoming
mainstream. However, our survey’s findings
seem to indicate that may not be the case after
all. Dealerships understand they have an earlyadvantage by being the best source for trained
EV Technicians. In our most recent study ofService shoppers, trained technicians were one of
the most desirable features dealerships provided.
If dealerships can remain the go-to option for EV
service, the revenue and Service volume numbers
found in this study should indeed prove out.

16

17About This Study
CDK Global aims to connect dealerships with the broader retailecosystem as well as car shoppers and owners. Understanding
the trends in buying, owning and servicing electric vehicles is
extremely important for the automotive retail industry as we moveto an all-electric future — even if that may take many years.

Peter Kahn
CDK Global Head of ResearchWith over 20 years of experience in researching all aspects of the automotive
retail industry, Peter’s work is focused mainly on how dealerships and brands
can improve efficiencies and meet the changing needs of the vehicle buyer
and service consumer. As the Senior Director of the CDK Global Research andInsights group since 2015, Peter has produced work that covers a range of
topics, such as Artificial Intelligence in the Dealership, Women in Automotive,
the State of the Automotive Retail Industry, Job Seekers in Automotive Retailand many more that help inform decision-makers in our industry.

Michelle Clark

INSIGHTSINSIGHTSINSIGHTSINSIGHTSINSIGHTS
Visit the Insights Center for the latest thought

leadership from CDK Global. From research toblogs, let us help you aim higher with industry

insights that take your dealership to the next level.

Manager, Customer Experience Research
Michelle is a research manager at CDK Global who has been working
with auto dealers for three decades. She enjoys bringing a dealershipcdkglobal.com/insights

perspective to current trends in the auto industry including cybersecurity,
staffing, fixed operations and the move to electric vehicles.

Maneka Prabhu
Research Analyst
Maneka recently completed an internship at CDK Global as a research analyst
and was a key collaborator on this project. She is currently a graduate
student studying business analytics at the University of Texas at Dallas.

18

19

Learn more at CDKGlobal.com© 2023 CDK Global, LLC / CDK Global is a registered trademark of CDK Global, LLC. 23-8401