High EV recall rates ‘good news’ for dealers, claims ADS

ADS (Auto Data Solutions) in the UK claims the high rate of electric vehicle recalls is “good news” for dealers looking to claw back service revenue between EV and ICE vehicles via improved customer retention.

The data company said its research showed an average annual UK workshop revenue shortfall of £175 per EV, compared with both ICE cars and vans.

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 found that electric vehicles account for one in five recalls, despite making up just one in 18 vehicles on the road.

ADS argues that customer contact between routine appointments is an overlooked driver of both profitability and retention.

“Our analysis is good news for dealers who are confronting fewer organic opportunities for customer contact between services,” said Jon Sheard, operations director. “For those dealers who manage their customer data most effectively the disproportionately high rate of EV recalls is a golden opportunity.”

Assuming the mid-point in conservative estimates of annual ICE maintenance of £300 – £400 and applying the same to EV servicing value of £150 – £200, ADS said it calculated an average differential in revenue of £175 per car.

Based on 1.2 million EVs in the total UK car parc this represents a reduction in routine dealer servicing revenues of £210 million across the industry.

“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 added.