The transition to net zero continues to grow, with over 1 million electric vehicles (EVs) on UK roads by the end of May.
The latest SMMT figures show that while the pace of growth may be slowing, the number of BEVs registered year to date is nearly 10% up on 2023.
The proliferation of BEVs will require automotive retailers to adopt new technologies to serve their customers better and build closer and more meaningful relationships.
The UK automotive sector is resilient and highly adaptable. It has navigated the challenges presented by the pandemic, the cost of living crisis, and new technology and retail models.
These virtues will be essential in the coming years as technology advances and the industry welcomes a wave of new manufacturers from Asia and around the world.
Technology is vital to developing greater interconnectivity between the OEM, dealer and customer.
An increase in the accuracy of data and the insight that can be derived from it will add value to the customer experience and create new commercial opportunities.
Advanced data insights can help to drive operational efficiencies through predictive marketing, where customer needs are anticipated and met.
A deeper understanding of customers will drive greater sales and aftersales revenues. Understanding your customers’ lives on a more granular level will help to move them into an EV at the appropriate time.
Dealers can look to drive additional revenue through the sale and management of a range of apps that will help with everything from charging to entertainment and driver information, such as driving dynamics.
The technology will add to the appeal of EVs as drivers can personalise their ownership experience, in the same way they make their phones and laptops their own. With a projected value of $1.3bn in 2021 and a projected growth of over $8.5bn by 2028, the personalised in-vehicle industry is poised for significant expansion.
These developments enable a degree of interactive and practical vehicle customisation.
Vehicles can identify their driver and their preferences, using biometric sensors and inside cameras.
Using this technology, the cameras and sensors would then be able to modify the temperature, driving modes, and seat position for that particular driver.
Likewise, smart keys customise the in-car experience according to the recognised user, going beyond simply opening doors. Trials are already underway to adapt a vehicle colour via an app.
Telematics will also enable a wide range of services, from route planning and vehicle diagnostics to safety enhancements.
The real-time data generated by telematics can be harnessed to ensure customers are in the right vehicle for their needs.
The market is already seeing the falling cost of batteries, and EVs will likely achieve cost parity with petrol and diesel vehicles within two years. This economic shift will further incentivise the adoption of EVs.
Buyers need to be able to test EVs to ensure they are the right vehicle for them. Longer-term test drives or rental-type ownership models will create additional sales opportunities and encourage more drivers to invest in EVs.
The journey to net-zero is a multifaceted challenge that demands innovative solutions. Digital technology stands at the forefront, creating new opportunities for dealers to better understand and meet the needs of their customers while driving new revenue streams.
By leveraging the power of data, new technology, telematics, and digital tools, automotive retailers can meet the growing demand for EVs and contribute to a sustainable future. The path to net-zero is not just a possibility—it is an imperative, and technology is the key to unlocking its full potential.
Mike Allen is the managing director of Cambria Private Capital