Top 5 Questions Surrounding EV and the Future of the Automotive Market

The automotive industry is experiencing a potentially drastic shift as electric vehicles (EVs) become increasingly prevalent.?JLR’s decision to develop a battery factory in the UK marks a significant turning point. This venture not only demonstrates their commitment to sustainable vehicles but also holds profound implication on motor dealers.

In this article, we will explore the impact of the EV battery factory and shed light on the top five questions you should know the answers to.

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Question 1: What does this mean for you and the market?

As the demand for electric vehicles rises, dealerships aligned with the brand gain a unique advantage. By offering a range of cutting-edge EVs equipped with locally manufactured batteries, franchised dealers can position themselves as leaders in sustainable mobility solutions. This development provides access to new customer segments, expands market share, and solidifies their position in the evolving automotive landscape.

The strengthened value chain means that dealerships will benefit from improved supply chain efficiency, reduced lead times, and a higher level of control over EV inventory. The local production of batteries ensures a seamless flow of critical components, minimising dependence on global supply chains and potential disruptions. Dealerships can thus offer customers a reliable and consistent experience, reinforcing their reputation for excellence.

Currently, there is a low demand for electric vehicles, but OEMs are receiving pressure to hit CAFE (Corporate Average Fuel Economy) targets, with the reduction of CO2 emissions of the 2021 baseline by 15% in 2025 and 37.5% in 2030.

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Question 2: Is this the future of the market, or have you bought into the press hype?

While the pace of transition may vary across regions and markets, the overall trend is not to be ignored. The shift to EVs is driven by environmental concerns, technological advancements, changing consumer preferences, and supportive government policies. Therefore, it is safe to say that the transition to EVs is not a passing trend but a fundamental shift shaping the future of the automotive industry.

As a motor dealer, you will need follow the Government's guidance to understand if the proposed targets will be met and understand what is to happen if they are missed, or if there is an implication on your business.

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Question 3: What is your current strategy for selling low emission vehicles?

The emergence of a JLR EV battery factory will bring forth several new revenue streams for dealerships nationwide. Apart from selling electric vehicles, dealerships can explore opportunities in battery leasing, energy storage solutions, and charging infrastructure. By tapping into the expanding ecosystem surrounding electric vehicles, dealerships can expand their revenue sources and establish long-term profitability.

Additionally, offering bundled services such as home charging installation or subscription-based maintenance plans can foster customer loyalty and create recurring revenue streams. The expanded services and maintenance opportunities should not be ignored. This includes providing battery diagnostics, repairs, and replacements, along with training technicians to handle the intricacies of EV technology. By evolving your business alongside the industry, franchised dealers can enhance customer loyalty and differentiate themselves from their competitors.

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Question 4: Is your website efficient to sell EV?

Your digital presence and positioning should be monitored and analysed continuously, to understand the user’s experience and your discoverability.

A website can be a pedestal to promote new products or services. In the stance of EV, the website can highlight commitment to sustainability through the sale of electric vehicles that contribute to a cleaner environment and a more sustainable future.

Additionally, dealerships should be providing information on financing options and the potential cost savings associated with EV ownership. This could include details about leasing or financing plans, as well as estimated running costs compared to vehicles with a traditional engine, such as reduced fuel expenses and lower maintenance requirements.

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Question 5: What are some the challenges your business could face with EV?

Is your business prepared to invest in EV infrastructure, training staff to handle new technologies, and managing the transition from ICE vehicles to EVs. Dealerships must adapt their business models to accommodate EV sales, service, and support while ensuring a seamless customer experience. Collaboration with manufacturers, and other stakeholders, will be essential to overcoming these hurdles and capitalising on the opportunities presented by the EV revolution.

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JLR’s decision to develop a new EV battery factory in the UK represents a pivotal moment in the automotive industry. Franchised dealerships associated with the brand have a unique opportunity to leverage this development and position themselves as leaders in the transition to electric mobility. By embracing the challenges, investing in training, and expanding their revenue streams, dealerships can thrive in this new era and play a vital role in shaping the future of low emission vehicles.

Are you an OEM, franchised dealer, or large/specialist independent dealer who is struggling with processes, people, or performance in the current automotive market? Get in touch with Lincoln Thurman , and work together, on-site, with a bespoke, performance-led programme, to sell more and make more profit.

Call today on 07918 148 998.

For more information on our bespoke programmes, visit our website:https://www.sentienceas.com/

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