The Electrification Movement

I am a long-term owner of an oil burning German estate car that’s been largely bombproof and is lovingly referred to as “Greta” by my kids. But conversely, I am also a bit of an EV nerd. I love the technology and could happily talk at length about the issues regarding charging infrastructure and battery power density improvements with the best of them.

With that said and knowing that Greta will not run forever, I spent one rainy Friday afternoon downloading some data from the DVLA (Driving and Vehicle Licensing Agency in UK) website to explore just for myself how the “electrification movement” is going and to understand how far behind the curve I am.

The self-fulling part of this activity was confirmed quickly. “Alternative” fuel types have clearly arrived. In March 2022, they made up 42% of all passenger cars registered in the UK, with Petrol and Diesel making up the other 50% and 8% respectively.

Compare this to just 5 years ago when Greta joined our family and the ratio was quite different; Alternative 4%, Petrol 52% and Diesel 43%.

What was most surprising was that “Alternative’s” growth was almost solely at the expense of Diesel and that Petrol had remained largely unchanged. I suppose being regularly criticised in the press, having higher purchase costs, limitations on access to built-up areas and the need to regularly top up the AdBlue levels -- all hurt the appeal of Diesel in the eyes of the buying public.

But the trend is clear, Diesel is dying and according to my trend analysis it will contribute negligible sales in 2023. Alternative fuel types, now dominated by Battery Electric Vehicles (BEV’s), are taking the lead, and will likely become the buying public’s preferred choice in the near future.


Graph: UK Passenger Car Registrations by Fuel Type Graph Tabe: EV's impact on Customesr, Dealers, and OEMs


The EV Impact on Customers, Dealers, and OEMs

The change is happening extremely fast, and its impact will be significant. When considering that the average age of a car on the road in the UK is just 8.4 years, it is not going to take very long before BEV’s dominate the whole market. Ignoring the struggles that infrastructure will have to support that population, the dealer networks which were designed to sell and support ICE cars will also have to change and adapt quickly.

Much of how EV’s will impact retail networks is unknown. But here are a couple of quick thoughts:

  • Higher purchase costs
  • Fewer services events
  • Higher service costs
  • Other considerations
    • Vehicle range
    • Charging options
    • Electricity costs
    • Insurance costs
  • Fewer Service events Potentially fewer technicians
  • Potentially reduced service shift patterns
  • More complicated service events Increased technician training
  • Higher customer service loyalty
  • Higher service revenue
  • Other Need to provide charging infrastructure
  • Revenue stream from charging
  • Having a breadth of vehicles across segments to meet EV demand.
  • Fewer Service Locations
  • Service Locations in more convenient desirable locations
  • Higher finance revenues
  • Charging infrastructure opportunity for revenue and increased brand exposure
  • Alternative Service Formats:
    • Mobile/Ranger Techs
    • OTA


Solutions to Stay Ahead of the EV Competition

What is clear is that the EV change is happening quickly. Having retail planning solutions that allow you to plan and then revise the plan as new information becomes available in a near-real time fashion will help you stay ahead of the competition.

NOVA, Optimum Info’s Network Planning and Dealer Performance Management solution, is no exception to this standard. If the EV situation makes you ask questions about what your network might look like in a more consolidated form or if new grounds have become available for you to explore, NOVA can help provide you the answers to those questions.

Develop, optimize, revise and manage your retail network while keeping all network stakeholders informed through one intuitive online solution. Solutions like NOVA will ensure you can always be on top of the trend and ahead of the competition.

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