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By Trisha Sirju ,
Vice President, Senior Risk Consultant, Marsh Advisory
02/20/2025 · 4 minute read
As electric vehicles (EVs) become more ubiquitous, the vehicle repair landscape has experienced a profound transformation. Basic tools and safety protocols have gained new importance, necessitating that both vehicle owners and repair shops adjust to this changing environment. EV buyers are also more likely to return to their dealership’s service department than independent shops, as they trust that technicians there are well trained and equipped for handling EV maintenance.
It is crucial for dealerships to adapt their fixed operations to meet the unique service requirements of these vehicles. To remain competitive in this evolving market, dealerships must invest in specialized equipment, train technicians, and explore new revenue streams. By proactively preparing for these changes, dealerships can position themselves for success.
EVs require distinct service procedures compared to traditional vehicles. As more consumers transition to EVs, dealership service departments will need to focus on several key areas:
While EVs may require fewer routine maintenance visits than traditional models, they introduce an opportunity to offer a range of specialized services that can enhance a dealership’s offerings. For instance, regular software updates, battery diagnostics, and monitoring systems specific to EVs will become critical components of service operations.
However, it must be said that servicing EVs changes the risk exposure of dealerships. The voltages used in EVs are significantly higher than those used in internal combustion engine electrical systems. Incautious servicing, repair, and maintenance of EVs can put workers at risk of electric shock, resulting in serious injury or death. Further, these batteries bring an increased risk of rapid thermal oxidation leading to catastrophic thermal runaway. Thermal runaway fires are self-sustaining and burn extremely hot. They are very difficult for firefighters to extinguish, especially those who are untrained.
To help ensure their organization remains profitable and their employees and patrons are safe, dealerships should consider undertaking the following actions:
By embracing these changes and preparing for the future of automotive service, dealerships may not only meet the demands of the growing EV market but also enhance overall safety and profitability. The transition to EVs is not just a challenge; it is an opportunity to innovate and lead in a rapidly changing industry.
For more information on how to protect your electric vehicles, please contact your local Marsh representative.