Dear CNCDA members,
As the Automotive Trade Association Executives (ATAE) Board Chair this year, I’ve had the opportunity to connect with my professional peers across the nation for interactive events, meetings and more. Recently, I participated in the ATAE Conference in Boston, where the theme was “embracing change.” As dealers are facing upheaval in our industry, so too are dealer association leaders — national, California and metro. Adapting to new laws, modified revenue streams, and more, is what ATAEs do on behalf of our dealers.
California dealers are subject matter experts on remaining nimble and welcoming growth. They know that customers in the Golden State are quick to learn and curious about new models and innovations in automotive offerings. Californians don’t fear change. Rather, they adopt it, fit it into their lifestyles, and then improve upon it.
“Embracing change” aptly describes our franchised dealer members, especially regarding the adoption of battery electric vehicles (BEVs). This massive shift in how vehicles are built, driven, purchased and serviced is “change” in the truest sense of the word. The BEV transition is the biggest disruptor to our industry since moving from horses and buggies to automobiles. And while the learning curve is steep, our dealers have voluntarily adopted an “all in for EVs” mindset.
However, this adaptability doesn’t mean dealers don’t have questions and concerns regarding the logistics and feasibility to support this massive public BEV adoption. Our members simply want to continue to offer California’s motoring public an exceptional car purchasing and servicing experience. Dealers want to give customers the same confidence and information about their BEVs purchase as they’ve been providing for traditional ICE vehicles for decades.
CNCDA is doing its part to provide our members with cutting-edge information to answer logistical questions specifically related to California’s energy grid and supply. At our recent Electrifying California webinar, we discussed the importance of advanced planning for electrifying dealerships, communicating with utility partners to get started early on the permitting process and ensure proper infrastructure, and allowing for, in some cases, a 50-60 week timeline for adequate charging installation.
Additionally, with the BEV market growing, we are seeing shifting OEM charging partnerships and offerings (think Blu-ray and HD DVD hitting the market at the same time). As customer education and preference (as well as our OEM partners) dictate vehicle charging options, like NACS v. CCS, these offerings remain in flux for now. Again, the need to remain adaptable is constant.
With our recently reported 2Q 2023 BEV market share numbers at 21.1% (thanks to data from Experian Automotive), our dealers are proving more than willing to help educate and sell BEVs to Californians. We expect this number to increase significantly as trust in charging stations is addressed. Manufacturers and their partners need to provide customers with chargers that are 1) accessible anywhere they travel, 2) quick, 3) functioning properly and finally, 4) affordable for all income levels.
CNCDA dealers continue to do their part to revolutionize the automotive industry, remain educated, offer innovative products and provide exceptional service to Californians. We look forward to seeing our manufacturing partners also play their part in this electrification of California’s new vehicles. Achieving 100% of new BEVs sold by 2035 requires OEMs to adopt a realistic approach. Recognizing the challenges dealers face in installing EV infrastructure, including existing constraints and tight timelines, is vital to ensure a successful transition.
By combining innovative vehicle selection, meeting consumer needs, considering affordability and preferences, and honoring the strong relationships between franchised dealers and our manufacturing partners, we can effectively prepare for California’s electrified future.
Sincerely,
Brian Maas, President
California New Car Dealers Association
