Dealers have made themselves ready to sell EVs but need a greater number of affordable models to arrive on the market to drive adoption.
That’s the view of David Hammersley, business and F&I manager at the National Franchised Dealers Association (NFDA), who said that although dealership staff were able to give customers confidence in going electric, the fundamental issue was buyers’ budgets.
Hammersley spoke at the Society of Motor Manufacturers and Traders (SMMT) International Automotive Summit, on a panel which also heard from Adam Wood, managing director at Renault UK, the manufacturer of some of the cheaper EVs currently on the market, who argued that volatile energy prices were causing a sustained change in consumer mindsets.
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EV demand ‘has not risen with dealer readiness’
Hammersley explained that dealers had made major investments to ensure they were ready to sell EVs.
He said: “We represent probably 80% of the AM100, so I’m talking here from the major motor groups, all the way down to owner drivers, and our opinion is that we are ready for the transition.
“A huge amount of money has been invested into the infrastructure of the dealerships, training of the sales departments and aftersales, to effectively create subject matter experts for when consumers come in wanting to talk about electrification.
“And that gives consumers a calm feeling and certainly confidence to make the purchase.”
However, Hammersley explained that these human factors were not enough on their own.
He said: “Unfortunately, the trajectory of demand hasn’t gone with the willingness of the automotive industry in the transition. But a lot of that comes down to affordability and whether the vehicles are reachable for consumers.
“We as an industry have spent our whole lives chasing targets. Consumers don’t buy targets, they buy what they can afford. And we’ve got to do our best to make EVs affordable.”
Customer financial considerations ‘tipping towards’ EVs
Renault’s Wood, whose company has seen particular success with the 5 E-Tech, acknowledged the importance of affordability in attracting customer EV demand. However, he argued that beyond purchase price, customers were also considering the models’ impact on wider household finances.
He said: “I think we’re at a pivotal moment for the electric transition. I certainly believe that it’s not just a blip that we’re seeing. I think we’re seeing a sustained change in consumer mindsets.
“People are looking at ways to protect themselves from the volatility in energy pricing that has increasingly become the status quo. So, I think when we talk to our customers, we’re seeing that that rational argument about how they can save money, how their car really does contribute to their household finances, is really an increasing equation.”
Wood argued that the balance in the ownership cost argument was increasingly tipping towards EVs.
He continued: “Why is that? Manufacturers are investing at record levels and bringing more and more affordable EVs to market.
“We’ve done that with the Renault 5. We’re about to bring the Twingo to market for under £20,000. And we mustn’t forget as well that that government Electric Car Grant incentive of £3,750 is making a tangible difference to that ownership cost equation.
“So, more and more people are seeing that it is making sense. And I think as that choice proliferates, we’ve got a unique opportunity to continue to drive that forward.”