A select club
Author: Mike Edwards, Chief Sales and Marketing Officer
LSH Auto presents some fascinating examples of two of the most prominent drivers of change in UK motor retailing today; the emergence of agency models and the rapidly increasing importance of Electric Vehicles (EVs). I found it particularly interesting that Vaughan Blackman, Managing Director at LSH Auto UK, has already experienced this shift to the agency model through his tenure with Mercedes-Benz in Australia.
Now with responsibility for eight Mercedes-Benz and Smart dealerships across the North-West and Midlands, Vaughan continues to support the shift to agency retailing. I find this encouraging because the broader LSH Auto business has 143 Mercedes Benz dealerships globally. Being dependent upon the scale/speed of the change by Mercedes-Benz and its level of commitment to the model, it is a business that needs agency to work.
The move to agency is signalling change at LSH Auto with a greater focus on used cars, and arguably, of most interest, is their position as an early adopter of the Build Your Dreams (BYD) franchise, one of a number of new Chinese OEMs entering the UK market. This strategic move aligns with the growing demand for electric mobility solutions and signifies LSH Auto’s proactive approach to meeting market needs.
Uniquely, BYD started as a battery maker and then became a vehicle manufacturer of electric cars, vans, trucks and buses and was No.1 in China’s EV market from 2014 – 2019.
Taking on BYD and with their increased focus on used cars, these decisions are indicative of the need to diversify that most retailers are feeling. With this commitment to continuous improvement, LSH Auto is positioning itself for success in an evolving automotive landscape.
These market changes are further reflected in the mounting pressure on aftersales. Retailers must look to other opportunities for revenue, and Value-Added Products (VAPs) should be part of this diversification. Presented correctly and positively, the days of single VAP sales could well be a thing of the past.
At AutoProtect Group we are committed to supporting the retailer community to deliver positive change.
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