Two Trends that OEMs and Dealerships Cannot Overlook

In recent years, OEMs and dealer groups in particular have weathered a series of new challenges in the industry, with new technologies and customer offerings beginning to change the face of the market. The future is also set to bring its own share of hurdles and opportunities, we examine two such OEM and dealership trends below.

OEM and Dealership EV Fleets Need Multimobility Solutions to Succeed

The rise of electric vehicles is driving the need for OEMs and dealerships to adopt fresh strategies that tackle the unique challenges of EVs while opening up new opportunities for profitability. Introducing multimobility services into existing business models is the means by which that success can be achieved, tackling difficulties such as differences in lifecycle value compared to their internal combustion engine counterparts.

Digital car rental, subscription, and leasing. Providing multimobility solutions is a crucial strategy for OEMs and dealerships facing external market pressures, such as EU regulations requiring automakers to produce a certain percentage of electric vehicles. Dealerships, too, have their own EV sales targets, but demand is slowing and leading to a lot more unsold vehicles collecting dust on the lot. In some cases, OEMs have been offering their dealerships extra remuneration for each EV sold, but that is not enough to bring in more customers, as excitement over EVs has cooled since the first way of adopters.

Offering used EVs over multiple services is a smart strategy for OEMs and dealerships. Image Credit: Shutterstock

Why is this? Vehicles with ICEs had a stable, predictable drop in value over its lifetime with a defined cutoff and sell-by date. With EV vehicles, that predictability is gone. With the rapid advancement of the technology and the erratic pricing changes and growing market supply, there is a huge question mark over residual value leading to lower customer interest and a bottleneck of unsold cars with nowhere to go. 

This is where multimobility solutions come into play. By planning for 7-8 years of use in a multimobility solution, a vehicle can maximize utilization during its entire lifecycle and guarantee that it will generate profit for years. We already have the surplus of vehicles, so now it falls to the OEMs to help guide their dealerships on how to reach consumers. Offering more flexible, nonpermanent ownership solutions are the perfect way to build up new customer bases and maximize vehicle ROI.

The final word on multimobility and EVs:

Offering multiple carsharing and rental solutions is an ideal way to help mitigate the risk that EV sales are currently facing in the market. Which has a twofold benefit for Europe’s OEMs because…

Chinese EV Makers Eye Europe with Mobility Services

China’s EV producers are booming and they are exporting worldwide. While many markets in the west have been difficult for Chinese OEMs to break into due to the obscurity, uncertainty, or lack of trust that buyers have for these brands, it won’t remain that way for long. Despite the difficulties they face with tariffs, increased import costs and fees, the prospect of breaking into Europe remains a clear and compelling ambition.

Chinese automakers such as BYD have long been eyeing the European Market. Image Credit: BYD 

Chinese manufacturers  are looking to get a larger foothold in the European market through offering mobility services, such as carsharing, digital rental or subscription. It is both a clever business and marketing strategy. By offering mobility services in Europe, Chinese OEMs can start to build brand recognition and reputation with local consumers. It will be essential for European OEMs to defend their home market and get ahead of the competition by launching their own mobility services. If Chinese companies succeed in Europe, it can pose an existential threat to European OEMs in terms of customers, market share, and profitability.

The final word on the European market:

The time is right on both sides, the deployment of mobility solutions is profitable and easier than ever to set up in a short period of time. We’ll have to see who steps up first.

Find success in 2025 and beyond with Vulog

Let’s tackle the exciting OEM and dealership trends of 2025 and beyond together. Connect with the Vulog team to discover how we can work together to help your business thrive in this ever-evolving landscape.