The battery electric vehicle (BEV) revolution is underway. Across Europe in particular, the evidence is everywhere.
BEVs will account for more than 15 percent of European new-car sales by 2025, according to our research. This number is expected to rise to as much as 50 percent by the end of the decade.
For traditional automakers, this is a massive shift that extends far beyond the production line. It calls on them to rethink not only vehicle design and manufacturing, but also the way BEVs are sold.
In particular, automakers must be prepared to rethink how new BEV sales can be more efficient and more effective, with a razor-sharp focus on making the customer journey as fast and simple as possible.
That includes orchestrating and integrating online and offline sales channels in a way that transforms customer experience as well as cost-effectiveness.
To understand the strategic actions that automakers can take now to prepare for the expected boom in BEV sales we analyzed the sales models and practices of Tesla.
Tesla's approach to the customer sales journey is strikingly different from what traditional automakers have been doing. Most notable is Tesla's streamlined efficiency.
For each sale, Tesla spends only about three hours on customer-facing and administrative activities.
That's a five hours less than the average traditional automotive dealer.
Advocates of traditional sales models might expect a lower time commitment would hurt conversion rates. The opposite appears to be true. At Tesla, one in every three leads buys a car. At traditional automakers, this figure can be as low as one in 10.