Electric vehicle direct sales from the automaker to customers are usually seen as the auto industry’s future rather than franchised dealership sales. However, it is interesting to note that the latter’s BEV sales increase faster than those of direct sellers, per California New Car Dealers Association (CNCDA) ‘s data for Q1 2023 based on Experian Automotive.
BEV sales: Franchised dealerships vs. direct sellers – Q1 2023
Franchised dealership BEV sales account for almost one-third of the overall volume in the first quarter of 2023. That result indicates a remarkable 140% year-on-year growth from the one-fifth share in the same period last year.
“New retail registrations for battery electric vehicles sold at franchised dealerships increased by 140 percent during the first three months of this year versus the year earlier. New registrations for vehicles sold by direct sellers increased 14 percent. Franchised dealership share of the state’s new retail BEV market increased from 19.0 percent in 1Q ’22 to 32.9 percent this year.”
CNCDA
CNCDA even provided a graph demonstrating a substantial gap between the two in terms of sales growth. Refer to the image attached to the Tweet below:
The results ultimately imply that franchised dealerships are attempting to regain market share in the BEV sector. Notably, it was previously led by direct sales primarily due to Tesla and other automakers like Rivian, Lucid, and Polestar.
For context, Tesla recorded sales growth of 10.6% YoY to 53,141 units, per the report. However, Lucid and Rivian are still newcomers to the EV industry, which explains direct sellers’ significantly slower growth pace.
See Also:
- Salt Lake City dealership increases the price of the Toyota bZ4X by $15,000
- Lucid fights against Texas’ dealership rules
- Ford Motor extends deadline for EV investment dealerships
- Tesla conducts trials for its new remote test drive strategy
- Tesla Model 3 has the highest used car discount
Indeed, dealers are embracing BEVs as increasingly renowned companies begin to offer all-electric vehicles. Ironically, they are now demonstrating their expertise, yet many people previously blamed dealers for weak BEV sales.
