Dealers should remain focused on serving EV customers rather than reacting to political headlines as the industry navigates shifting regulations, evolving consumer demand and changing competitive dynamics, says CDK’s Dave Thomas.
The details: The industry analyst told CDG News that recent policy developments, including restrictions on Chinese-connected automakers such as Polestar, should not be viewed as a sign that the U.S. EV market is weakening.
Upcoming CDK research actually shows consumer loyalty to EVs remains exceptionally strong, Thomas told CDG News via email.
Just 5% of EV owners surveyed cited government incentives as the primary reason for purchasing an EV, while environmental benefits (34%) and cost savings (21%) ranked much higher.
Additionally, 90% of current EV owners said they intend to purchase another EV.
"Some brands are actually seeing shortages of the EVs they sell because demand is outpacing supply,” added Thomas. “I never believed, even with massive incentives, car buyers were opting for a still very expensive product only because of the subsidized deal. None of our research shows that.”
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Between the lines: Thomas said CDK's findings suggest some automakers may have pulled back their EV strategies too aggressively, while the U.S. Commerce Department's decision to bar majority Geely-owned Polestar from selling vehicles beyond the 2026 model year could strengthen the competitive position of legacy automakers.
Barring Polestar makes it highly unlikely that globally competitive Chinese EV brands such as BYD and Zeekr will enter the U.S. market, Thomas said.
That gives legacy automakers a clearer path to grow their EV offerings without facing direct competition from Chinese brands.
"Dealers should focus on their customers and their geography," said Thomas. "If you're in a green-friendly state, lean into the environmental aspect. In other states, the cost savings of EVs may be the stronger message. It's now pretty well proven that any EV in any state will have a lower total cost of ownership than a comparable gas car."
For dealers evaluating their EV strategy, his message is this: Focus on customer needs, regional market dynamics and long-term ownership value, not short-term policy headlines.
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