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The new Westfield store is the fourth BYD showroom to open in partnership with LSH Auto. Motor Trader caught up with Vaughan Blackman, MD of LSH Auto UK, and Mark Blundell, head of marketing BYD UK.
With BYD stores already up and running in Stockport, Macclesfield and Tamworth, the new Westfield London (White City) store is the fourth BYD showroom to open in partnership with LSH Auto. It also happens to be LSH Auto’s first ever showroom in London. As one of the first dealers in the UK to take on the BYD franchise, LSH Auto recognises the brand’s strong potential in the UK.
Vaughan Blackman, managing director of LSH Auto UK, said: “We’ve generally always been Mercedes apart from some other brands in certain markets. We are selective about our partners.
“We look for partners that have long-term commitment in their customers, their products and their markets. We see that in BYD. We look for brands that have strong products and have invested in market areas where we see growth. All the brands we represent have a good position in the market for growth.”
Mark Blundell, head of marketing BYD UK, added: “From our perspective, what we were keen on when we started the journey back in March is we wanted retailers with a proven track record in the UK, strong ability with customer care, premises, marketing capabilities. The ability to grow with us.
“Although we started off with four pioneer stores, we knew that each of the retailers we partnered with have potential to grow with us and that is best demonstrated here today. We have a partnership with LSH who have an amazing Stockport store and have grown to include a store here as well.”
Fast growing OEM
BYD was the fastest growing OEM in 2022, according to the latest figures from JATO Dynamics. The Chinese brand has been in the UK for just over a year and for most of last year it had one model, the Atto 3. The Seal arrived this year and the Dolphin, available for preview at the new showroom, will launch in the summer.
In 2023, BYD hit a record-breaking 3 million sales which makes it the number one New Energy Vehicle brand in the world in terms of volume and the 9th highest volume manufacturer overall. Considering the brand’s automotive division was founded in 2003, the growth over 20 years has been remarkable.
Blundell said: “Our strength is that we were born from being a battery manufacturer so not only are we the global leaders of NEV sales, but we are also the second biggest battery manufacturer in the world. That gives us scale, the know-how and the expertise to offer our products in a positioning that we call premium accessible. Lots of equipment, lots of technology but at a price point that is more comparable to a petrol car.”
BYD’s latest battery technology, Blade Battery, was introduced to mitigate concerns about battery safety in EVs and the development took several years of work. The Blade Battery, for example, passed a nail penetration test, which tests the thermal runaway of batteries.
The Blade Battery did not emit smoke or fire and its surface temperature only reached 30 to 60°C. Under the same conditions, a ternary lithium battery exceeded 500°C and burned and while a conventional lithium iron phosphate block battery did not emit smoke, its surface temperature reached 200 to 400°C.
Location matters
The Westfield shopping centre is also home to other EV brands such as Tesla, Fisker and Genesis. The footfall in the large shopping centre makes it the perfect location for attracting prospective customers.
“We were in discussions with BYD about our network, we were working with offerings in Manchester and Birmingham. They asked if we would consider other markets and we said yes, we are open. We did some research on the London market, in discussion with BYD.
“We looked at this as an opportunity for LSH and BYD in the London area because of the high traffic flow and the exposure it gives the brand. That’s a great position for the brand to get strength and customers exposed to the brand,” said Blackman.
Blundell echoes the sentiment. “The store here, the footfall here is phenomenal, which is a big driver for wanting to be here. That will all help in cementing credibility and interest in the brand.”
Customers can learn about the range of vehicles and eventually test drive them downstairs in the car park where there are test drive bays for customers to take the cars out and experience them. The showroom is a full-service offering, if people want information they have the opportunity to explore but if they want to take things further, they can also make a purchase.
“Customer retention is key for us. BYD is a start-up operation in the UK and it needs to get it right first time in order to build up repeat business. Across our other businesses we’ve got focus and strategy on customer retention, loyalty programmes, teams working in customer retention,” Blackman continues.
“If the ownership experience is good – when they need servicing they can get it, when they need support they can get it, they will stay with us.”
Blundell adds: “The key is getting the foundations in place. We have made great strides with the model launches and getting partners in place. Phase two looks like doubling on showrooms by the summer, 40-50 by the summer expanding onto 70-80 by the end of the year.”
The addition of new models will boost future sales and give some critical mass. April saw BYD begin to build its presence in the UK with registrations increasing ten-fold year-on-year to 333 units.
“What we are delighted to see is that each showroom is growing independently as well so we see this exponential growth.
“One of the advantages we have is pretty much complete ownership of the vertical supply chain. We manufacturer pretty much everything on the car, we’ve brought on stream our vessels to bring them across. So, we can be fairly reactive to things but for now it’s about supporting the push for growth and making sure we have stock available.”
Eliminating range anxiety
As an all-electric brand, BYD is in a strong position to reflect on consumer demand for EVs and the factors which influence attitudes towards the switch to electric.
“I saw an article that BEVs on the road had passed 1 million. What we are seeing is that customers once they have made the switch, they stay, and those who are still looking to crossover need more information or encouragement to a transition.
“Battery technology helps consumers with any perceived range anxiety, it helps eliminate that. The cars look good, they are high quality, they are technologically advanced and laden with features and things that people like. They are coming in at price points that would rival that of traditional ICE engines. It is a point where consumers can make the switch, it’s not costing them more to do it,” says Blackman.
The BYD Atto 3 has a claimed range of 260 miles (WLTP combined), while the BYD Seal (354 miles WLTP combined) and the BYD Dolphin (265 miles WLTP combined) strengthen the lineup with increased range.
The very-near future
BYD’s media strategy kicked off at the start of the year with the launch of the Seal, BYD’s first major TV campaign.
“I think the main challenge is awareness, which is about getting the brand out there, making sure we’re visible. Making sure we present the brand in the right manner,” says Blundell.
The brand has seized various opportunities to present itself ‘in the right manner’ but the biggest opportunity of all in terms of marketing campaigns will be the brand’s partnership with the Euros in the summer. As an official partner for UEFA Euro 2024™, BYD will have access to a far-reaching audience.
“In the summer, we are going to be one of the lead partners in 2024. Although it is in Europe it will get billions of views. One of the big thrusts for us is about activating that and making sure its front and centre.”
So, BYD is finally in Britain, building a network of established dealers. The one issue that may slow its growth – and others’ too – is the lack of incentives to consumers to buy EVs, which is putting a damper on sales and ongoing concerns over charging infrastructure and range.