As more Canadians choose an electric vehicle as their next vehicle, gas stations may face some significant challenges, according to an industry observer.
S&P Global Mobility’s Canadian Automotive Insights for Q3 showed battery electrics made up 10 per cent of new vehicle registrations. Plug-in hybrids were another 3.2 per cent. Both numbers were highs in each category.
“With fewer customers needing traditional fuel, gas stations may experience a decline in revenue,” Harrison & Hunter Agency Partners wrote in a blog post. “Additionally, the need for charging infrastructure will become more prevalent, requiring gas stations to adapt and invest in electric vehicle charging stations.”
To stay relevant as more EVs populate roads, gas stations will need to transform. They will need to embrace the change.
“They can consider incorporating electric vehicle charging stations alongside traditional fuel pumps. This diversification will allow gas stations to cater to both electric and gasoline-powered vehicles, ensuring they remain a convenient stop for all types of motorists,” the post said.
A common criticism of EVs is the lack of publicly available charging stations. Gas stations can take a leading role in resolving this issue — stations are commonplace in many cities. Installing fast-charging stations, which can recharge a vehicle in minutes, would aid EV adoption by lessening range anxiety.
“Gas stations can also explore partnerships with automakers to provide exclusive charging services for their electric vehicle customers,” the group said. “By teaming up with manufacturers, gas stations can offer branded charging stations and loyalty programs, creating a unique selling point that sets them apart from competitors.”
The agency even recommended that gas stations offer new services to EV owners, such as vehicle maintenance and battery swapping.
“The rise of electric cars presents both challenges and opportunities for gas stations. While the need for traditional fuel may decline, the demand for charging infrastructure is on the rise,” the post said. “By adapting their business models, investing in charging infrastructure, and exploring partnerships with automakers, gas stations can play a vital role in supporting the transition to electric vehicles. The future of gas stations may look different, but with innovation and forward-thinking, they can remain an essential part of our transportation infrastructure.”