Multi Brand EV strategy: How auto sellers are doing it.
Electric vehicles (EVs) have been gaining significant traction in the automotive industry in recent years. With the increasing demand for sustainable transportation, more and more auto sellers are jumping on the EV bandwagon. However, instead of just selling one brand of EV, some sellers are taking a different approach – implementing a multi-brand EV strategy. In this article, we’ll delve into what multi-brand EV strategy is all about and how auto sellers are successfully incorporating it into their business models.
What is multi-brand EV strategy?
Multi-brand EV strategy is the practice of offering vehicles from different EV manufacturers under one dealership. This means that instead of exclusively selling one brand of EV, auto sellers include multiple brands in their product portfolio. For instance, a dealership might offer EVs from Tesla, Nissan, and BMW, among others.
The idea behind this strategy is to give customers a wider range of options when choosing an EV. With a multi-brand approach, customers can compare different makes and models, and find the one that best fits their needs and budget. This not only benefits customers but also allows auto sellers to tap into a larger market share.
Why are auto sellers adopting multi-brand EV strategy?
The shift towards multi-brand EV strategy is driven by several factors. The primary reason is the increase in competition in the EV market. In the early days of EVs, there were only a handful of manufacturers, and it was easier for auto sellers to form partnerships with them. However, with the rise of new players, competition has intensified, and partnerships have become more challenging to come by.
Another reason for the uptake of multi-brand EV strategy is the varying features and capabilities of EVs. For instance, Tesla vehicles are known for their long-range and advanced technology, while Nissan offers more affordable options. By offering a variety of brands, auto sellers can cater to different customer needs and preferences, and ultimately increase sales.
How are auto sellers making it work?
Implementing an effective multi-brand EV strategy requires careful planning and execution. Maintaining healthy relationships with EV manufacturers is vital, as it allows auto sellers to secure partnerships with them. This can be achieved by consistently meeting sales targets and providing exceptional customer service.
Auto sellers also need to consider the physical aspects of their dealership. They have to ensure that they have enough showroom space to accommodate vehicles from different brands. Additionally, the staff must be knowledgeable about all the brands being offered, as well as the latest developments in the EV market. This will help them provide customers with accurate information and help them make informed purchasing decisions.
Moreover, investing in marketing and branding efforts is crucial. With a multi-brand EV strategy, auto sellers have the opportunity to showcase a diverse range of vehicles, which can attract a wider customer base. They can also target specific audiences for each brand and use various marketing channels to promote their products.
The success of multi-brand EV strategy
So, is multi-brand EV strategy a worthwhile venture? The answer is yes. Companies that have adopted this approach have seen an increase in sales and expanded market share. For example, AutoNation, one of the largest auto retailers in the US, started offering EVs from multiple brands in 2010. By 2018, EVs accounted for 6% of their total sales, compared to the national average of 1%. Similarly, UK-based dealership group Pendragon began selling EVs from different manufacturers in 2018 and saw a 16% increase in EV sales.
Moreover, multi-brand EV strategy also allows auto sellers to future-proof their business. With the EV market expected to grow exponentially in the coming years, having a diverse product portfolio will give auto sellers a competitive edge.
The bottom line
Multi-brand EV strategy is revolutionizing how auto sellers are approaching the EV market. By offering vehicles from various brands, they can cater to different customer needs, increase sales, and stay ahead of the competition. As the demand for EVs continues to rise, this approach will become even more crucial for the success of auto sellers. So, if you’re in the market for an EV, keep an eye out for multi-brand dealerships, and you might just find the perfect fit for you.
