In a recently-published report, the International Energy Agency said the global fleet of electric vehicles grew by 54 percent in 2017 to 3.1 million units. The U.S. sold 280,000 units.
The global fleet of EVs will rise to at least 125 million by 2030, the report said. That number could grow to 220 million if enough governments put supportive policies in place.
Is the inexorable rise in the number of EVs on the road something for U.S. dealers — many of whom don’t like to sell EV since they take more time to sell and generate lower amounts of after-sales service – should worry about? I don’t think so. Though there may be a global fleet of 220 million EVs by 2030, the IEA report predicts the total global fleet could hit two billion by 2035 to 2040.
I am in general a supporter of electrification, so I hope dealers do make an effort to sell more electric vehicles. But it seems there will still be plenty of demand for ICE cars as well.
Dealers should be thinking about other changes in the fleet, such as car sharing, short-term leasing, and the like. And they are. At least Walker Starling, who along with his family owns an auto group in Florida, is thinking about it. He and his brothers and father are looking to acquire more franchises now to, as he said, “thrive as long as there is a retail car business.” Read the Starling Auto Group profile in this week’s issue.
Also this week we have part two of a series on the new tax law from our friends at Crowe (they dropped Horwath from the company name). Read it to ensure you take full advantage of changes in the tax code.
And, Transaction News!