For much of the past decade, the automotive industry’s focus on electric vehicles has been dominated by one overriding objective: adoption, writes Ian Plummer, chief customer officer at Autotrader.
Success has largely been measured by how many EVs are sold, how quickly, and at what headline price. Today, that conversation is evolving.
As electric vehicles move into the mainstream, retention – keeping customers, vehicles and value within retail networks – is emerging as the next critical industry challenge.
For retailers, this shift changes the economics of EVs – from a one time sale to a question of whether customers, vehicles and value stay within the franchise network over multiple ownership cycles.
EVs already account for a rapidly growing share of demand. Around one in four new enquiries on Autotrader are now for battery electric vehicles, up ten percentage points since mid 2025. Attitudes are shifting at pace too, with almost two in three buyers saying they would consider an EV for their next car.
But while adoption is accelerating, the industry’s original assumptions about loyalty are being challenged. EV buyers are proving significantly less brand loyal than their ICE counterparts, with only 22% of EV buyers returning to the same brand, compared to 44% of petrol buyers.
EV buyers are also behaving differently at every stage of the journey – researching more, comparing more, and spending a greater proportion of their journey online – which raises the bar for retailers looking to retain them.
That gap is material – and it has serious commercial consequences.
From background metric to core commercial risk
Historically, retention was seen as something that would take care of itself. EVs were expected to deepen loyalty, driven by perceived technical complexity, reliance on franchise expertise and stronger ties to OEM ecosystems. In reality, the data shows the opposite: EV retention is not only lower than ICE – it is continuing to fall.
Why does this matter? Because retention underpins almost every major driver of dealer profitability: aftersales revenues, part exchange supply, residual value stability and long-term lifetime value. With EV aftersales economics already structurally weaker, falling retention exacerbates pressure at exactly the wrong time.
A structural issue, not a consumer confidence problem
Crucially, this is not simply about changing consumer behaviour. It is the outcome of how the EV market has been structured over recent years.
Large volumes of EVs flowed into leasing and fleet channels without effective routes back into franchise retail. When vehicles returned to market, many went to auction, where independents and supermarkets acquired and retailed them aggressively, often undercutting franchised prices.
The result has been a loss of control – over both vehicles and customers – and faster than expected used EV value declines.
Why timing makes this especially serious
At the same time, new EV price pressure is improving new car affordability but weighing heavily on used values, particularly for younger stock.
For 3–5 year old EVs which has been the fastest selling segment on Autotrader for nearly two years, franchise retention has fallen to around 44%, compared with nearly 65% for petrol, leaving EV retention roughly 20 percentage points lower overall.
When EV and PHEV stock leaks into independent channels, it is priced significantly more aggressively – over £4,000 lower on average for a three year old vehicle – further undermining residual values.
Risk – but also opportunity
Lower loyalty does not automatically mean lower opportunity. In fact, it expands the conquest market. In a lower loyalty environment, execution matters more than brand gravity alone, and retailers that execute better – through pricing, presentation, finance and reassurance – can win share more easily.
For franchise retailers, this underlines the importance of visible, credible Approved Used EV programmes, stronger finance led retention strategies and faster speed of sale on ageing stock. Clear warranties, battery health reassurance and transparent pricing are becoming as important to EV retention as product range once was.
For high quality independent retailers, the shift creates opportunity too. With EV buyers researching more, behaving digitally first, and actively comparing options, independents that combine transparency, competitive pricing and confidence building propositions can compete very effectively.
Retention is the next phase of the EV transition
The hardest part of the EV transition is no longer selling the first car. The next chapter will be defined by how effectively the industry retains customers, vehicles and value within the ecosystem.
That requires coordinated action – from retailers, OEMs and finance providers alike. Those who move early and treat EV retention as a strategic priority rather than a secondary metric, will be best placed to protect profitability and grow long term value as the market matures.
Author: Ian Plummer, chief customer officer, Autotrader
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