Challenges Faced by Ford and MG Dealerships Amid Declining Sales and Shift to Electric Cars

The automotive industry is facing a significant shift as traditional car dealerships grapple with declining sales of new vehicles, particularly to private customers. Platts of Marlow, a Ford retail dealer with a long history in Berkshire, is feeling the impact of the changing market dynamics. With a limited range of Ford models available for sale, the dealership has seen a 30% decrease in new car sales.

Jim Platt, the company chairman, expressed concern about the dwindling options for customers, especially with popular models like the Fiesta and Focus being discontinued. Despite the challenges, Platts of Marlow is finding success in catering to customers who prefer used and nearly new Fords over electric cars. However, sourcing these vehicles is becoming increasingly difficult as competition among dealers intensifies.

The situation at Summit Garage in Dudley mirrors the struggles faced by Platts of Marlow. The dealership, which currently holds the MG franchise, is also experiencing a decline in retail sales and will soon part ways with the brand. Co-owner John Newey highlighted the tough times in the motor trade, with fewer customers making purchases.

The latest figures from the SMMT paint a grim picture of the UK’s car market, with a significant drop in new car sales to private buyers. Despite efforts to promote electric vehicles through incentives and mandates, EV sales to private customers have also seen a decline. SMMT chief executive Mike Hawes emphasized the need for a balanced approach to encourage the transition to electric vehicles.

While manufacturers are under pressure to meet ZEV mandates, the reluctance of private buyers to embrace EVs remains a significant challenge. The industry must find ways to address consumer preferences and concerns to drive the adoption of electric vehicles effectively.

As traditional car dealerships navigate these turbulent times, adapting to changing customer preferences and market trends will be crucial for their survival. The shift towards electric vehicles presents both challenges and opportunities, and dealerships must find innovative ways to attract and retain customers in this evolving landscape.