Why EVs Will Not Dominate The Parts Industry Anytime Soon
Electric vehicles (EVs) are all the rage these days. EV sales keep climbing every year. It’s clear that EVs are becoming more and more popular because:
- EVs need less maintenance
- EVs have fewer mechanical parts than gas- and diesel-powered vehicles
- EVs are great for the environment
- EVs are cheaper in the long run
- EV’s never have to go to the gas station
At this rate, it seems that EVs will take over the market before we know it. “Seems” is the operative word here. Despite all the buzz about EVs, they won’t dominate the parts industry anytime soon. Here are 4 reasons why:
1. Almost 85% Of Drivers Are Not Open To The Idea of Buying An EV
Contrary to popular belief, most people don’t even want an EV. In 2019, AAA did a study that concluded that almost 85% of American drivers weren’t interested in owning an EV. They cited these reasons:
- Limited range
- Higher upfront costs
- Lack of a public charging infrastructure
EV sales are growing, but EVs are not as popular as some people think.
2. A Staggering Majority Of Vehicles On The Road Are Only Powered By Gasoline Or Diesel
It may seem that EVs are everywhere. But if you keep your eyes open, you may notice that most of the new cars on the road are gas- or diesel-powered vehicles. In fact, in 2019, 95% of new vehicles sold in the US were powered by internal combustion engines. EVs are still in the “early adopters” stage. That means only a few adventurous car buyers are willing to get an EV. It can take years – or even decades – before most drivers are comfortable with the idea of owning an EV.
3. The Average Age Of Cars On The Road Is Almost 12 Years Old
We can see many drivers warming up to the idea of owning an EV. But it will likely take decades before the majority of the cars on the road are EVs. It’s because drivers are holding onto their old cars more than ever. In 2019, research firm IHS Markit discovered that the average vehicle on the road is 11.8 years old.
So if a driver buys a brand new car today, they may keep it for about a decade. It will most likely be powered by an internal combustion engine. Let’s also say that the same driver decides that their next vehicle will be an EV. 10 more years will go by before they buy it.
That’s why the adoption of EVs is going to be very slow.
4. A Large Segment Of The New Vehicle Market Isn’t Electrified Yet
Image Credit: Fortune
In America, pickup trucks and SUVs make up a huge segment of the new vehicle market. These vehicles are more popular than ever.
Right now, there are no electric pickup trucks or large SUVs available on the market. Some auto manufacturers are developing electric pickups and SUVs. Yet, many drivers have concerns. For example:
- Driving range is limited in EV sedans. It’s going to be even more limited in larger vehicles. This can be a deal breaker if somebody needs to tow a boat or an RV for a long distance. Pulling over to charge up every 100-150 miles just isn’t realistic.
- Pickups and SUV’s weigh a lot, so they will need bigger batteries. Batteries are one of the most expensive components in an EV. The cost of the battery pack will drive up the upfront price of a new electric truck or SUV to a much higher point than that of a similar gas-powered vehicle. Considering the limitations that come with electric pickups or SUVs, it’s no wonder most people don’t want to splurge on one. They’d rather get a gas-powered vehicle for much cheaper.
For those reasons, electric pickup trucks and large SUVs won’t become popular soon. Gas- and diesel-powered vehicles will continue to dominate the American market for years.
The Parts Industry Should Still Adjust To EVs
The seemingly booming popularity of EVs has many auto parts companies feeling a little uncertain about the future. The four reasons listed above should put some of their worries to rest. Yet, it’s important to mention that the parts industry should still adjust to EVs.
EV sales are only going to keep growing. Even though drivers will adopt EVs very slowly, EVs are around to stay. A successful parts shop would stock EV parts alongside internal combustion engine parts.
The aftermarket parts industry is already adapting to the rise of EVs. Even though it may take a few decades before EVs dominate the market, many aftermarket companies are preparing for it now. So if you’re an independent shop owner or manager, it’s worth figuring out how to adapt to EVs, too. We’re here to help you do this. We put together an informative free ebook that will help your shop adapt to EVs with ease. Download it today to stay ahead of your competitors!