MotorVise Automotive
Opinion Piece: There is a solution to the falling BEV market share
The market share of battery electric vehicles (BEV) is shrinking rather than growing which presents both dealerships and manufacturers with a major headache, writes Fraser Brown of automotive consultancy MotorVise.
A total of 48,388 BEVs were registered in the UK in March, according to the SMMT, which is 3.8% up on the same month last year. However, much of this was down to fleet sales, while the market share of pure electric vehicles has actually dipped from 16.2% in March 2023 to 15.2% in March this year – despite the introduction of new and more keenly priced models offering a greater range.
Not only are dealerships caught in a transitional no man’s land between the internal combustion engine (ICE) and BEV, but the figures are well below the government’s zero emissions vehicle target of 22% - which could see manufacturers who fail to meet the target fined £15,000 for every car which fails to comply.
Affordability and a lack of charging infrastructure remain the biggest reasons for consumers sticking with the internal combustion engine (ICE).
However, a solution exists that could result in 30 percent of all new car customers being sold a BEV – but it requires a move away from traditional sales methods and an investment in sales staff, who remain key to reinvigorating the electric revolution.
MotorVise has already worked with a two site dealership group, between June 2023 and January this year, which has seen its BEV retail sales mix jump from 8 to 30% - making it second ranked in the country.
Our own research reveals more than 60 percent of UK drivers have access to off-street parking, allowing them to take advantage of the significant cost savings available from domestic overnight charging.
I’ve long been an advocate for an innovative approach to BEV sales. The loss in market share is concerning but not surprising as many dealerships respond by increasing their marketing expenditure or offering discounts on registrations to drive sales. Yet it’s clear this traditional approach is ineffective and needs to be reevaluated.
There is a more effective strategy. The key to unlocking the true potential of pure electric sales lies in staff engaging customers in meaningful conversations. Sales teams need to be well-versed in the advantages of BEVs compared with ICE and be able to tailor their approach to each customer's unique needs and concerns.
If sales people possess the up to date knowledge, the tools and qualification processes, they can confidently discuss pure electric vehicles with every customer, even those who hadn’t ever considered owning one!
Manufacturers and OEMs should align ICE and BEV retail campaigns, and this would provide consumers with a realistic and real world comparison that balances the greater upfront cost of a pure electric car with the considerable savings available to those who can charge using cheap overnight domestic charging.
This means that 30 percent of all new car customers could be sold a BEV today, if the right conversations happen in the dealership and a test drive is encouraged. Even if it is not currently the right option for a customer, having that conversation plants a seed for the future.
Our MotorVise EV Retail Sales Mix Programme has been revised for 2024 and is specifically designed to increase the mix of BEV dealership orders.
We recommend our one day training course is held prior to hosting a sales event. We also offer a coaching programme led by industry experts who support sales teams via monthly half day visits to drive change and embed BEV culture.
The opportunity for retail sales is immense considering the untapped potential within the market. By shifting the focus towards educating sales staff and fostering a deeper understanding of BEVs among new car buyers, dealerships can not only overcome the latest disappointing figures but pave the way for a more sustainable and electrified future.
ENDS
NEWS RELEASE: ISSUED ON BEHALF OF MOTORVISE AUTOMOTIVE
Photo Caption: Fraser Brown of MotorVise
For further information contact Andrew Douglas on 01325 363436
Editor’s Notes
MotorVise was established by Fraser Brown in 2014 and offers a comprehensive range of services designed to allow dealerships to meet their sales, service, and profit objectives. These include the provision of car sales events, car dealership recruitment, F&I compliance, sales incentive systems, staff training courses and vehicle progressor systems. In November 2022, it was named as Recruitment Agency of the Year for a second year running at the Motor Trader Industry Awards.
back to MotorVise Automotive
