The advancement of electric vehicles (EVs) is revolutionising the automotive industry, paving the way towards a more economic and sustainable future. Increasing public concerns surrounding environmental sustainability alongside available EV stock fuels a necessary push for electric vehicle sales. Technological progression of electric vehicles presents as a promising solution to reduce carbon emissions and decrease reliance on fossil fuels. Moreover, this shift towards electrification reveals an exceptional opportunity for dealerships to capitalise on the growing EV market.
Electrification of the UK automotive market.
Electric vehicles have gained significant momentum, fuelled by advancements in battery technology, government incentives, and changing consumer priorities. Technological improvements in battery technology have resulted in better performance, faster charging speeds and a wider range of electric vehicles. Therefore, EV batteries are becoming increasingly more efficient, affordable, and able to power longer distance driving. What’s more, the UK charging infrastructure is gradually growing. With increasing installation of public charging stations, switching to an electric vehicle becomes a more feasible option for most people.
Further, one of the driving forces for EV development in the automotive market is the ambitious policies promoted by the UK government. Prominent deadlines and goals highlight that now, more than ever, there is political momentum to meet local pollution and overall net zero targets. In addition, consumers are becoming increasingly more environmentally conscious in their automotive decisions. EVs offer a greener option without tailpipe emissions, initiating a movement away from the traditional internal combustion engine (ICE) vehicles.
Growing demand for new and used electric vehicles.
Following motivations from government policies, manufacturers are producing a wider range of electric vehicles. In conjunction with improvements to charging infrastructure, there is a major opportunity in both new and used electric vehicle sales. The launch of new electric models expands customer choice, gradually bridging the gap between demand for EVs versus ICE vehicles. Comparatively, ICE vehicles tend to hold a lower purchase cost, though the significant savings which can be had by running an electric vehicle which is more economical tends to balance, if not tip, the scales in favour of electric vehicles.
Considering the new registrations of fully electric vehicles, SMMT data from June 2023 indicates a 39.4% increase compared to June 2022. Moreover, electric and hybrid vehicles are recorded to be dominating 56.9% of the UK new car sales market against petrol and diesel vehicle sales. Suggesting customer demand and intent to change to electric vehicles is on the rise and will likely continue to grow moving forward.
Looking at used EV sales, the continuing surge of available used stock kindles demand for EVs in the second-hand market. Observing UK used car transactions data, SMMT comments ‘battery electric vehicles (BEVs) were the fastest growing powertrain, with transactions rising 56.5% to 26,257 units, representing 1.4% of the market – up from 0.9% last year.’ An improving used EV market is causing a price realignment across the board with several electric models. Leading to a steadying of used electric vehicle prices which will transform customer demand and increased sales conversions.
Opportunity for automotive dealerships in EV sales.
The electric revolution is bringing about transformative change to the automotive industry, sparking opportunities in electric vehicle sales. Dealerships embracing EVs and aligning their approaches with the growing demand for electric vehicles will thrive in this developing market. By adopting the electric vehicle options and leveraging innovative approaches, automotive businesses can contribute to a greener, more sustainable future while obtaining the rewards of an expanding industry. Rising popularity of electric vehicles requires dealerships to evolve and adapt aspects of their business, such as marketing and aftersales. In turn, maximising all electric vehicle sales opportunities.
Given the array of electric vehicles currently available and growing public interest, now is the opportune time for dealerships to be engaged with EVs. Sales executives across every dealership need to become raving advocates for electric vehicles. To maximise opportunities, sales teams must have genuine enthusiasm in how EVs can be an excellent option for many customers. Marketing communications must encourage customers to consider the EV options available to them, spark their interest and create demand.
Fraser Brown, MD, MotorVise notes: ‘The successful dealers in Q3 and Q4 2023 will be those that can jump on the available stock and put customers’ interests at the heart of the sales process, giving them expert advice on why owning an EV is the sensible choice for most customers.’
The future of electric vehicles.
Undoubtably, there is a promising future for electric vehicles in the automotive market. The automotive industry is rapidly transitioning, with Manufactures responding to government policy, technological opportunities and change in consumer interest. In turn, many manufacturers are investing heavily in development to enhance battery technology, increase vehicle range, and reduce costs.
Electric vehicles have revolutionised the automotive industry, offering a sustainable and environmentally friendly alternative to traditional vehicles. The combination of technological advancements, environmental benefits, and economic opportunities positions EVs as a transformative influence in the automotive industry. With continued investment and support, electric vehicles are likely to become the go-to vehicle for the majority of customers. The automotive industry will move forward with electric vehicles, environmental focus, and technological advancements. With the additional push from ambitious government policies, there is no time like the present for dealerships to take action and implement measures to be successful in the electric vehicle revolution.
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