Aion is sticking with its strategy of steady dealer network growth with established groups, as it launches its second UK model.
The new UT is an electric supermini which has joined the range this month, alongside the V electric medium SUV which debuted earlier this year. Five more models are planned to arrive next year, including the GS7, a large plug-in hybrid SUV.
The Aion brand is owned by Chinese manufacturer GAC, and has made its UK market entry in partnership with Jameel Motors.
Ensure you always get AM insight. Make us a preferred source of news on Google.
Speaking to Automotive Management at the press launch of the UT, Lee Giddings, head of sales at Aion Auto UK, explained the growth plan for the network, which currently includes 14 dealers.
He said: “We’re constantly engaged with new retailer partners. For us, the most important thing is finding the right partners that we can grow with.
“We’ve got a great dealer network as it stands today. So, it is a case of growing that. We’re looking to get to around 25 by the end of this year. And that will increase the next year up to around 50. And further growth after to 100 by 2030.”
Giddings said that Aion was very close to finalising opportunities in Scotland and Northern Ireland, where the brand currently has no dealers. However, he pointed out that the brand does already have aftersales coverage in those countries via its mobile servicing arrangement with the AA.
He said: “If you are based in Scotland, you’re not going to be restricted in terms of being able to get the car serviced or maintained, because the AA will just come out to you and do that, either at the roadside, or they can do it at your workplace, or on your driveway. So, it’s actually a really convenient proposition for customers.”
Aftersales offer tipped to benefit dealers
The AA agreement reflects a brand which has placed a big emphasis on aftersales with its ‘Great Eight’ promise, which includes an eight-year warranty along with eight years’ servicing, roadside assistance and MOT testing. As Giddings explained, as well as giving Aion a USP with which to attract customers, this is an offer which provides a major benefit to the brand’s dealer network.
He said: “It supports our retailer network, as those retailers are seeing those cars every year, seeing that customer every year as well, keeping engaged with that customer. So, from a retention perspective, it’s massively beneficial to us as a brand.”
The steady network build up planned by Aion contrasts with the approach taken by other market entrants such as Omoda/Jaecoo, which have scaled up rapidly and reaped big sales rewards.
When asked how Aion can stand out against them and other Chinese entrant competition, Giddings emphasises the brand’s confidence in its product and the ‘Great Eight’ offering, but adds that its current emphasis is mainly on local marketing, targeted around dealer locations.
He said: “We do a lot of regional marketing where we’ve got the local dealers in place. There’s more emphasis on activity around those areas, such as local radio, digital billboards, and so forth.”
Retail appeal identified for UT
As for the new UT, Giddings expects it to take second place in Aion’s sales ranking behind the V, owing to the sections of the market the two models occupy. However, he emphasised that the models’ EV powertrains do not mean they are seen by the brand as primarily fleet cars.
Related reading: Aion UT comes with servicing to make buyers smile
He added: “We don’t set specific targets for fleet or retail. I don’t mind who drives our product, frankly speaking, and how they choose to fund it. For us, the most important thing is that individual is choosing an Aion product to drive.
“If you look at SMMT numbers, you will naturally see a slightly higher mix in terms of EV product on the fleet side. which we will probably follow as a trend with our product, but I think the UT presents itself as a fantastic retail proposition.”