Automotive consultancy MotorVise has warned that dealerships will have to rethink their electric vehicle (EV) sales strategy in the wake of the new Labour government’s pledge to reintroduce the 2030 ban on the sale of new internal combustion engine (ICE) cars.
Many dealerships relaxed their focus on EV sales after a decision by the former Conservative administration in September 2023 to delay the 2030 ban of all new ICE vehicles to 2035.
Fraser Brown, founder and managing director of MotorVise, which has launched a unique sales programme designed to boost dealerships’ electric vehicle sales mix by more than 20%, said the 2030 reintroduction of the ban ICE will result in a major rethink of sales strategies.
Manufacturers will also have to drive behaviour in the dealerships as it is they that face hefty fines if they fail to meet the Zero-Emission Vehicle (ZEV) mandate that requires car makers to meet annual incremental EV quotas.
He said: “The delay in the ICE ban from 2030 to 2035 slowed the shift to electric vehicles for both retailers and consumers. Many consumers, thinking they had more time to switch, put off any decision to purchase an EV, while the delay also introduced market uncertainty.
“In addition, retailers adjusted their marketing and sales strategies, meaning investment in EV sales promotions and training was no longer a priority, affecting the readiness of sales teams to effectively sell and support EVs
“This means many dealerships will be left scrambling to meet the challenges of Labour’s reintroduction of the 2030 ban.”
Currently 80% of car buyers would not consider an EV due to preconceived and often misleading notions based around cost and range – leaving the motor trade devoting a disproportionate amount of its marketing spend on just 20% of potential customers.
MotorVise’s Enhancing EV Mix Programme is an industry first designed to expand that pool by rewriting the showroom sales experience by changing attitudes and perceptions.
Surveys carried out by the consultancy reveal a majority of sales teams are hampered by a shortfall in general EV sales training. Such training embeds EVs firmly in the sales process and gives salespeople the knowledge to ask the right qualifying questions and offer accurate answers around practical ownership, ensuring every customer will be offered an EV option.
Sales teams are encouraged to spend more time with customers to understand their current and future vehicle needs, taking into account different powertrains and journey requirements. The best opportunity to boost EV sales is during loyalty events for existing customers, who are more likely to engage with a trusted dealer.
A series of communications are also sent aimed at engaging and educating potential customers regarding EVs. Once at the showroom, the customer will also be shown the financial options balancing vehicle cost and fuel cost, using MotorVise’s EV cost comparison tool, which highlights fuel savings between the internal combustion engine and EV, together with an invitation to take a test drive.
Fraser Brown added: “This programme is designed to increase a dealership’s EV sales mix by radically rewriting the traditional and outdated customer experience framework – replacing it with a new embedded sales process that encourages all customers to seriously consider the benefits of EV ownership, perhaps for the first time.
“Most retail customers are unresponsive to EVs, and we are committed to changing that to make dealerships more profitable by empowering sales teams to change perceptions simply by educating and informing customers.”