| Media item | |
| | Dealers face huge EV charger bill | GoAuto News,
Sandringham
by Neil Dowling
| 24 Apr 2024 | | General News - Page 27 - 480 words - ID 2063624735 - Photo: Yes - Type: Car Review - Size: 325.00cm2 | |
AADA report says EV charger investment in dealerships will exceed $1b
By NEIL DOWLING AUSTRALIA'S 3000-plus new-car dealers are poised to spend more than $1 billion to roll out their charging infrastructure to cope with incoming electric vehicle sales and service requirements.
A report prepared for the Australian Automotive Dealer Association (AADA) by climate risk and energy transition experts Energetics has come at the same time as industry bodies including the Victorian Automotive Chamber of Commerce and Motor Trades Association of Australia call for government aid to fund the purchase of specialist EV repair equipment and boost skills training.
In announcing the report, AADA CEO James Voortman said the required investment for EV charging alone was "significant".
But he said that dealers understood "the importance of investing in this infrastructure and their role in educating customers on EVs".
"New car dealerships will be at the forefront of rolling out EV chargers as manufacturers require them to install chargers at their showrooms and service departments as part of their franchise agreements," he said.
"Many consumers considering taking the leap and buying a new EV are looking for their dealer to provide education about the vehicle and the charging experience.
"The availability of EV chargers in dealerships means vehicles in stock can be charged and made available for test drives while buyers can also see first-hand how charging works." Mr Voortman said that evidence suggested that the majority of new EV owners will be servicing their vehicles with an authorised repairer under manufacturer warranty.
"It's important that dealers can ensure these vehicles are able to be charged," he said. "This report makes an important contribution to this issue, especially in light of energy minister Chris Bowen's recent announcement of $60 million in support of car dealers installing EV chargers.
"The work done by Energetics can be an important resource for the government in developing the details of the $60 million car dealer charging fund," Mr Voortman said.
Energetics' analysis found that: Investment needed in infrastructure is estimated to exceed $1 billion for franchised new car dealers inAustralia.
With more than 3100 dealers nationwide, the capital investment is expected to range from $130,000 for a typical regional dealer to $580,000 for a typical rural dealer.
The rollout of EVs is anticipated to occur in metropolitan areas at a faster rate initially than regional and rural locations. This is mainly due to the availability of the necessary infrastructure. Customer demand is also expected to be greater in metropolitan locations.
As rural dealerships are assumed to require the largest upgrades to electrical infrastructure, upgrade costs are higher than those for metropolitan and regional dealerships.
Dealerships need to carefully consider the type of EV chargers installed on-site. Some locations may not need Level 3 charging capacity (e.g. metropolitan and regional dealerships), although this will often be determined by the OEM and written into dealer agreements.
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