BLOG Getting closer to customers and growing retail EV sales

SMMT new car registration figures for September show a fourteenth month of consecutive overall growth, with battery electric vehicle (BEV) sales up 18.9%. That paints a positive picture for electrification, but deeper scrutiny shows that growth in the BEV market is largely being driven by fleet demand.

Just as consumer consideration for EVs appeared to be rising in 2023, the government announced the delay to the 2030 ICE ban, creating more uncertainty. Our flash survey immediately after the announcement, found that 41% were now less likely to buy an EV as their next car, specifically because of the delay to the ICE ban.

But it’s not just government legislation that causes indecision; our customers tell us the range anxiety (42%,) perceived lack of EV infrastructure (50%) and price mismatch with ICE vehicles (43%) are still major sticking points for them to make the leap.

Our research shows that 21% of buyers are what we refer to as ‘passive considerers’; those who expect to buy an EV in the future but not for their next car.

This represents a huge opportunity, and increases the onus on us all – OEMs, retailers and marketplaces like carwow – to help bridge the gap between EV’s early adopters and the mass market.

One of the most important ways OEMs and retailers can contribute to the mass adoption of EVs is by selling the whole experience, not just the car. Whether that be around talking to buyers about their lifestyle, home charging set-up, benefits of off-peak tariffs, putting them at ease over public infrastructure and talking to the general ownership experience.

Retailers are in a unique position to engage, guide and reassure, via digital channels and in-person. They can also provide practical incentives to entice wavering customers, such as discounts on home charge points or favourable finance and warranty packages that mitigate risk and counter that embedded ‘FUD’.

With a more holistic view of EV ownership that addresses ‘Majority’ audience group concerns with practical, logical evidence, all consumer confidence will grow and sales will naturally follow.

It’s worth adding that the rise of Chinese brands could also help accelerate EV adoption. In carwow Germany, BYD now claims the largest share of leasing enquiries and with the German market operating a year or two ahead of the UK, we might expect to see similar trends emerge here in the near future.

Sepi Arani is commercial director at carwow UK