Honda's New EV Friendly Retail Plans Hint at the End of Mega Dealerships
【Summary】From simplifying the buying process to inventory changes, there's a lot that is going on behind the scenes at Honda. The automaker wants to design more flexible retail spaces that will offer a new purchase experience for its future electric vehicles.
With the launch of the electric Prologue SUV co-developed with General Motors looming in Honda's future, the automaker is making some changes to its EV plans.
The Prologue is scheduled to arrive around 2024 and is quite an important model for the company, so Honda is not leaving any stone unturned for its launch. From simplifying the buying process to inventory changes, there's a lot that is going on behind the scenes.
As part of the launch of the Prologue, Honda is planning some significant changes at the dealership level. The automaker is not only simplifying the process of EV buying for years to come, but is also dedicated to eliminating the frills of traditional car dealerships, which will result in less EV inventory, and smaller building footprints.
The traditional megaplex dealership, with big complexes designed for car shopping, might soon become a thing of the past. Considering the growing competition from manufacturers like Tesla and Rivian, it makes sense that Honda is determined to reduce the space for selling its EVs. The automaker aims to design a flexible space that will offer a new purchase experience.
Tesla and Rivian were the first to adopt this streamlined business model. Now automakers Ford Motor Co and Volvo are also employing direct online sales via the web for their EVs.
For one, working out of small retail showrooms enhances overall efficiency and profitability. With that in mind, Honda wants to create its own virtual showroom selling its future EVs.
As part of these plans, Honda is redesigning its dealerships and is turning them into modern retail spaces. The automaker envisions a space where buyers can go for more infrequent maintenance services, as well as pick up their EVs after placing an online order.
It's safe to say that Honda's new vision does not seem that far-fetched, considering more modern-day marketing and business models. In addition, managing a mega dealership and securing an inventory of hundreds of vehicles requires substantial resources and a larger workforce.
In today's world, a more strategic approach would be to downsize the dealership to fit what EVs consumers actually want. The idea seems to work better than having vehicle models languishing at dealerships only to sell them at discounts later. But creating a smaller dealership for vehicles pre-ordered online could help automakers reduce their overheads.
However, it is worth noting that the automotive industry and the business model of selling cars is still in the early stages of digitalization. Furthermore, dealerships that fail to stay afloat often get acquired by larger auto groups.
Honda's new dealership design will allow retail spaces to act as a quick pit stop in the purchase process. In addition to its new EV-friendly retail outlets, Honda is also working on an immersive virtual showroom.
-
Ford's Lincoln Star Concept Offers a Glimpse into the Electric Future of the Luxury Brand
-
GM's New 'Plug And Charge' Feature Will Simplify the Charging Process For its Current & Future EVs
-
Volvo is Building a New EV Service and Training Facility at its U.S. Headquarters in New Jersey To Fast Track its Electrification Plans
-
Volvo Cars and Epic Games to Partner on a High-Resolution 3D Digital Driver’s Display Powered by the Unreal Engine
-
Here's One Way Lucid Motors Made the Air Sedan More Spacious for Passengers
-
The 2023 Polestar 2: Delivery Updates, New Pricing, Color Options and New Tech
-
The Genesis X Speedium Coupe EV Concept Debuts in New York City
-
Quick Comparison: German-Made Tesla Model Y vs. the China-Made Version
- Mercedes-Benz is Partnering with Game Engine Developer Unity Technologies to Create Immersive, 3D Infotainment Screens and Displays for its Future Vehicles
- The Tesla Model Y and Model 3 Take the 1st and 2nd Place Spots in the Annual Cars.com ‘American-Made Index’
- California’s Electric Vehicle Sales for Q1-Q3 2022 Show That Tesla is Facing Growing Competition
- Construction of Panasonic’s New EV Battery Factory in Kansas to Start in November
- Ford Looks to Have 100% of EV Sales Be Online
- Honda's New EV Friendly Retail Plans Hint at the End of Mega Dealerships
- Audi Hits EV Startup NIO With a Trademark Lawsuit Over its Vehicle Naming
- Amazon Customers in Texas and California Will Begin Receiving Packages via Prime Air Drones Later This Year
- Ford Motor Co is Recalling 2.9 Million Vehicle That Could ‘Roll Away’ After the Transmission is Shifted Into Park
- California Startup Orbis Brakes Debuts its Revolutionary 'Periodic Wave' Brake Line Developed in Collaboration with NASA