What China’s big strides mean for Electric Vehicle and e-mobility marketing in UK

September 11, 2024

The recent publication of the PwC’s Q2 2024 Electric Vehicle Sales Review suggests a surge in the sale of plug-in hybrid electric vehicles (PHEVs). While much of this recent growth, in all analysed markets, can be put down to EV sales in China – up by a whopping 98% in Q2 2024 vs. Q2 2023, the implications of this shift are still profound for the UK. Our Director, James Starkey, explores why: 

The automotive industry is at a crossroads, with the rapid adoption of electric vehicles, reshaping markets across the globe. For the UK, a country who was poised to lead the charge in electrification, understanding the dynamics and the way they are shaping not only auto dealer trends but, manufacturing sectors as well as car insurance and auto finance, is going to be critical for developing innovative and engaging on and offline marketing strategies that resonate with UK consumers. 

The Surge? A UK Perspective

Ok, so the UK market is still experiencing a significant rise in EV adoption (albeit, not quite as much as China) driven by a combination of consumer demand, government incentives of past, and a growing awareness of environmental issues. 

According to the data from PwC, electric vehicles accounted for 37% of all vehicle sales across 21 markets in Q2 2024. In Europe, and particularly the UK, the transition to electrified vehicles has been even more pronounced, with battery electric vehicles (BEVs) and PHEVs now constituting a substantial share of the market​.

For UK car dealers and manufacturers, this surge presents both opportunities and challenges. On one hand, the growing demand for EVs offers a new revenue stream and the potential to capture a leading market position. On the other hand, unsurprisingly it requires a fundamental shift in how vehicles are marketed, sold, and supported throughout their lifecycle.

Understanding the Consumer’s Journey to Electrification

The typical UK buyer’s journey to purchasing an EV is markedly different from that of traditional internal combustion engine (ICE) vehicles. The decision-making process is influenced by factors such as environmental impact, total cost of ownership, charging infrastructure, and government incentives. For digital marketers, this not only means creating content and campaigns that address these specific concerns but a level of expertise that the consumer can rely on and trust.

Key Strategies for Engaging UK EV Consumers:

1. Highlighting Cost Efficiency: While the upfront cost of EVs remains higher than that of ICE vehicles, the long-term savings in fuel and maintenance are significant selling points. Digital campaigns should focus on these cost savings, using tools like interactive calculators that allow consumers to compare the total cost of ownership over the lifespan of the vehicle.
2. Promoting Environmental Benefits: The UK government’s commitment to achieving net-zero emissions by 2050 has heightened public awareness of environmental issues. Marketers, if you’re not already, should capitalise on this by emphasising the environmental benefits of EVs, such as reduced carbon emissions and the use of renewable energy in manufacturing processes.
3. Educating on Charging Infrastructure: Concerns about charging infrastructure remain a barrier to EV adoption in the UK. Digital content that educates consumers on the availability and convenience of charging options, including home charging solutions and the expansion of public charging networks, can help alleviate these concerns.
4. Leveraging Government Incentives: The UK government offers various incentives for EV buyers, including grants and tax benefits. Curating targeted campaigns that highlight these incentives, making it easier for consumers to understand how they can reduce the overall cost of purchasing an EV, while also remaining aware of the latest availability of said incentives and qualification criteria

The Role of UK Car Dealers

The shift to EVs necessitates a rethinking of the traditional sales process. According to PwC, the growing popularity of EVs has also led to increased competition, particularly from Chinese OEMs, which are aggressively entering the European market​.  Back in 2023, some franchise dealers were already backing the new wave of Chinese EV brands making an appearance on the UK car market. Expecting the likes of BYD and GWM Ora to establish a foothold in the new car market sooner than later, it was estimated that 68% of car dealers anticipated the new Chinese EV entrants to account for up to 10% of the new car market within the next year.

And, while, we’re a little way off that yet – the PwC data is telling.

Within that survey, lack of brand familiarity, limited aftersales support and build quality were cited as the key concerns that may deter a purchase from the disruptors vs. a well-know manufacturer.

Similarly, unlike ICE vehicles, EVs often require more education and customer engagement, both online and in the showroom so in consideration of the above, here are some recommendations:

Strategic Opportunities for UK Car Dealers:

1. Enhancing the Online Experience: With the majority of UK consumers beginning their car-buying journey online, it’s crucial for car dealers to offer a seamless digital experience. This includes comprehensive vehicle descriptions, virtual test drives, and easy-to-navigate financing options. Incorporating AI-driven chatbots can also provide instant support and answer questions about EV features and benefits.
2. Training Sales Teams on EVs: Sales teams must be well-versed in the specifics of EVs, taking note of not only the battery life and range to charging options and government incentives but the solutions to the consumer’s current challenges that they provide. Ongoing training will ensure that staff can confidently address customer queries and guide them through the purchase process.
3. Offering Flexible Financing Options: Given the higher upfront costs of EVs, offering flexible financing options, including leasing and subscription models, can make EVs more accessible to a broader range of consumers. Digital marketing campaigns should clearly communicate these options, making it easier for potential buyers to consider an EV.
4. Fostering Long-Term Relationships: The relationship between car dealers and EV owners doesn’t end with the sale. Offering post-purchase support, such as maintenance reminders and updates on new charging stations, can help build long-term loyalty and encourage repeat business. Enhancing your marketing with retention strategies that go beyond lead generation using the power of data are no longer a consideration but a necessity.

The Manufacturer’s Challenge: Innovating in a Competitive Market

For automotive manufacturers in the UK, there is both opportunity to innovate and a challenge to maintain competitiveness. As referenced, the PwC’s report highlights the growing influence of Chinese manufacturers in the global EV market. To remain competitive, UK manufacturers must focus on differentiating their products through quality, technology, and brand reputation. The evolution of the automotive distribution model could be considered around three main dimensions

• The consolidation of the dealership network
• A progressive switch towards the agency model, with dealers operating as agents for the trade of new vehicles and no longer holding inventory risk;
• The idea of the adoption of a direct-to-customer business model for OEMs, with dealerships acting as service providers to complement the on-line customer journey has also been presented

Key Strategies for UK Manufacturers:

1. Investing in R&D: Innovation is key to staying ahead in the competitive EV market. UK manufacturers will continue to invest in research and development, focusing on improving battery technology, extending vehicle range, and enhancing the overall driving experience. Digital marketing can play a crucial role in showcasing these innovations to potential B2B and B2C audiences.
2. Building a Strong Brand Identity: With the influx of new competitors, particularly from China, UK manufacturers must strengthen their brand identity. Emphasising British engineering, quality, and heritage can help differentiate local brands from foreign competitors. Storytelling through digital content, social media, and influencer partnerships can effectively convey these brand values.
3. Collaborating with Tech Companies: The convergence of the automotive and technology industries offers new opportunities for UK manufacturers. Collaborations with tech companies on autonomous driving, connectivity, and AI can result in cutting-edge products that appeal to tech-savvy consumers. Digital marketing efforts should highlight these partnerships and the advanced features they bring to vehicles.
4. Adapting to Regulatory Changes: The UK government’s push towards electrification is accompanied by strict regulations on emissions and vehicle standards. As manufacturers must ensure that their vehicles comply with these regulations while also preparing for future changes, transparent communication with consumers about how these regulations impact vehicle design and performance is essential for maintaining trust.

The Future of UK Automotive Marketing: Digital Innovations and Strategies

As the UK continues its journey towards electrification, digital marketing will play a pivotal role in shaping consumer perceptions and driving sales. The findings of PwC’s report underscore the importance of adapting to new consumer behaviors, embracing technological advancements, and staying ahead of global competition.

Emerging Trends in UK Automotive Digital Marketing:

1. Data-Driven Personalisation: We’re working with a number of brands now to really drive use of data analytics to deliver personalised marketing and messaging. We covered it in our recent webinar series. By leveraging customer data, marketers can create tailored campaigns that resonate with individual preferences, driving higher engagement and conversion rates.
2. Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies are transforming the way consumers interact with brands. Virtual showrooms, immersive test drives, and 3D visualisations of vehicles allow consumers to explore and experience EVs in a highly engaging way. These technologies are particularly effective for reaching younger, tech-savvy audiences.
3. Content Marketing and Thought Leadership: As consumers seek more information about EVs, content marketing is detrimental to the establishment of authority and building trust. Whether a brief 30 second video, paid ad with minimal characters or blog post. Creating varied, useful content that address common questions about EV ownership can position brands as leaders in the field.
4. Social Media and Influencer Marketing: Social media platforms continue to be powerful tools for reaching and engaging with consumers. Collaborating with influencers who have a strong following in the automotive or sustainability niches can amplify brand messaging and reach a broader audience. If you’re not looking into this yet – it’s set to be a disruptor across all automotive sectors. 
5. Sustainability Messaging: With growing awareness of environmental issues, sustainability has become a central theme in automotive marketing. Highlighting a brand’s commitment to sustainability, whether through the use of eco-friendly materials, renewable energy, or carbon offset programs is already resonating with the UK consumers  or automotive brands we’re working with. 

As we look to the future, it’s clear that the most successful brands will be those that not only keep pace with technological advancements and regulatory changes but also anticipate and respond to the needs of the modern consumer. In this rapidly evolving market, staying ahead of the curve will require a combination of agility, innovation, and a deep understanding of what drives consumer behaviour as well as consistent and clever partnerships.

For those who can master these elements, the road ahead is full of potential.

Relevant Resources:

We have curated a series of resources relevant to this article.

Source Referenced: PwC’s Q2 2024 Electric Vehicle Sales Review