Geographic nuances to success
In this dynamic landscape, it is evident that not all brands will achieve their aspirational levels of success. Securing a significant market share in this environment demands a profound understanding of the market nuances and the strategic agility to outperform rivals in capitalizing on the available opportunities.
The predictions from GlobalData, looking further into the future, are clearly subject to much more uncertainty. But it is interesting to note their current view that brands such as Ford, Land Rover and Toyota could be the big winners – with established brands such as Tesla, MG and Audi expected to suffer most.
With consumer interest in EV outside of the fleet market still developing, there is an observable uneven distribution of demand across various regions. In the UK, certain areas emerge as hot spots where the market share of private EVs exceeds the national average. This is particularly noticeable and easy-to-understand in towns and cities like Cambridge and Exeter, where there are high levels of EV registrations. Factors such as local council strategies, investments in charging infrastructure and a substantial used EV market, especially in Exeter, contribute to this trend. The rate at which other areas adopt EVs will vary, influenced by local demographics, political decisions and investments in EV infrastructure and initiatives.
Challenges Facing 2024 Growth
The path to this growth is not without distinct challenges. A primary focus remains targeting and marketing to early adopters within the private buyer sector, who play a crucial role in driving positive sales trends. Another significant hurdle is overcoming dealership resistance. This requires a tactical approach that not only involves engaging early adopters physically but also encompasses providing comprehensive EV education and fostering a culture that embraces the future of electric vehicles.
Accurate forecasting of EV sales is pivotal in pinpointing potential and existing hot spots. This involves not just understanding where the market is currently thriving but also where it has the potential to grow. The expansion of EV market share relies on a multifaceted strategy that includes targeted marketing, precise sales forecasting, engaging advertising campaigns and potentially offering incentives such as test drives and experiential events.
For manufacturers, the role is evolving into that of a key orchestrator, where they are tasked with empowering dealerships through advanced digital marketing support, providing critical insights and supplying innovative tools. And together as a retail network, manufacturers and dealerships must adapt and collaborate to leverage these strategies effectively, ensuring they are well-positioned to meet the demands of a rapidly changing automotive landscape.