3 major issues to be aware of in EV transition – ADS


Data experts, ADS, believe the UK’s automotive sector faces three key challenges in 2025:

Mistrust of EV valuation forecasts
EV residual value concerns have shaken consumer confidence, leading to increased leasing costs and retail prices. With the Zero Emission Vehicle (ZEV) mandate requiring 28% of vehicle sales to be electric in 2025, manufacturers may raise petrol and diesel vehicle prices to subsidise EV discounts. ADS warns this 'balancing act' will test the industry’s resilience, especially amidst a cost-of-living crisis.


Rising vehicle recalls
The fast pace of EV development is driving more recalls, due to complex engineering and software issues. These recalls are challenging dealers that have inaccurate customer records. However, recalls present opportunities for dealers with clean databases to boost customer retention and experience, and secure additional sales.


A growing EV-servicing gap
EV servicing demands are minimal, threatening profits derived from aftersales work. Dealers must adapt by offering services like battery health checks and EV diagnostics while improving customer engagement through data-driven strategies.

ADS highlights the need for dealers to embrace disciplined customer data management and innovative revenue streams, transforming challenges into opportunities to lead in the EV transition and maintain market competitiveness.

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