EVs & Digital: A New Dealer Playbook

Last week, we took part in a discussion that explored key shifts in mobility and retail – drawing on both Vulog’s insights and select industry research, including recent findings from McKinsey & Company. ”

The discussion, moderated by Christopher Martens and joined by Dr. Anna-Sophie Smith alongside our CEO, Gregory Ducongé, explored how these trends are reshaping automotive retail — and how Vulog is helping dealerships navigate this evolving landscape.

The Future of Car Buying: How Digitalization and EVs Are Forcing Dealers to Adapt

The automotive industry is undergoing rapid change. As electric vehicles (EVs) reshape consumer preferences and digitalization redefines buying journeys, car dealers find themselves at a crossroads. Vulog’s dealer-focused research, supported by broader industry data, such as McKinsey’s Mobility Consumer Intelligence, reveals what’s driving this transformation—and how dealers can stay ahead.

Consumers Want More Tech, Less Hassle

McKinsey’s survey of over 26,000 car owners highlights a striking shift: buyers today demand seamless digital interactions but still value in-person experiences at key moments.

• Online dominates early research, but test drives remain non-negotiable: 83% of female and 79% of male buyers insist on trying a car before purchase.
• Younger buyers (Gen Z and Millennials) expect innovations like test drives within 24 hours, features-on-demand, and better charging experiences.
• Older generations prefer a smoother, simpler process, but increasingly expect digital convenience as standard.

Meanwhile, brand loyalty is eroding, especially in the EV segment: over half of EV buyers switch brands. Premium buyers, in particular, are more likely to switch to better deals.

The EV Effect: Disruption and Opportunity

Globally, EV adoption is gaining momentum:

• In China, 45% of consumers say their next car will be a battery electric vehicle (BEV)—more than double the share in the US and EU.
• Yet, 32% of US buyers say they’ll never switch to EVs, highlighting a regional divide.
• Plug-in hybrids remain a transitional favorite in Europe and the US.

                                                               Credits: McKinsey & Company

EVs also shake up market dynamics for dealers. According to Vulog’s insights:

• EVs mean 20% less spending on aftermarket parts compared to combustion vehicles, squeezing traditional revenue streams.
• 68% of dealers worry EVs will hurt profitability.
• Economic pressures compound the challenge: passenger car prices have soared by 51% since 2015.

Digital Expectations Are Redefining the Buying Journey

Today’s buyers are digital-first:

• Ninety percent of consumers expect an omnichannel experience when purchasing a car.
• Nearly one-third plan to buy fully online, particularly in high-growth markets such as China and India.

Credits: McKinsey & Company

Yet, the in-person dealership remains vital, especially for test drives, final negotiations, and delivery. While McKinsey’s data supports this trend, Vulog emphasizes the importance of combining digital tools with in-person experiences to meet evolving customer expectations.

How Dealers Can Respond: Rethink, Innovate, Optimize

Vulog outlines a clear playbook for dealers to stay competitive:

1. Test Drives

• Replace manual bookings and rigid schedules with flexible, data-driven systems.
• Result: +15% more test drives, +3–5% higher conversion rates, and up to +25% boost in sales through personalization and faster lead times.

2. Fleet Utilization

• Turn idle fleet assets into profit centers through multi-purpose use, bonus offers, and streamlined digital management.
• Impact: +3% conversion rates, +20% fleet utilization, and operational time savings.

3. Courtesy Vehicles

• Transform courtesy fleets from cost centers into revenue drivers by offering rentals after hours and adding self-service tools.
• Benefits: reach break-even in under a year and improve customer experience scores by 15%.

4. Strategic Framework

• Economic pressure: Improve cost efficiency and transparency.
• EV disruption: Diversify services and create new profit centers.
• Elevate customer expectations: By enhancing the digital experience and offering add-on services.

The Road Ahead

Buyers increasingly value technology, personalization, and convenience, especially in EV segments where loyalty is low and competition is fierce. Vulog’s insights confirm this shift and provide dealers with actionable strategies to stay ahead,  such as digitizing test drives, rethinking fleet use, and embracing omnichannel strategies. Dealers can adapt to this evolving landscape.

In the end, the message is clear: the future belongs to dealers who move beyond selling cars to delivering innovative, data-driven mobility experiences.

At Vulog, we help dealerships and OEMs do exactly that—turning digitalization and EV adoption into opportunities to unlock new revenue and deliver next-generation mobility experiences.

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