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Hi,
I looked up some figures for The Netherlands market. I thought I would share them.
The focus of this analysis is on vehicle price and the number of dealerships.
Vehicle | Model 3 | iPace | Audi ETron | Model S/X | Hyundai Kona | 2019 60kwh Nissan Leaf | Porsche Taycan |
---|---|---|---|---|---|---|---|
Starting Price (Euro) | €58,000 | €79,180 | €80,000 | €85,000/€85,000 | €32,800 | €35,500 | €120,000? |
Number of service centers / dealers * | 8 | 23 | 80 | 8 | 19 | 76 | 32 |
Everyone understands the price issue, and that the Model3 falls neatly between the higher end vehicles from Audi and Jaguar, and the lower end ones from Nissan and Hyundai. It isn't a terrible spot to sit.
Why did I do an analysis on the number of dealerships? Well, I had a past career in vehicle product planning and the success of a product had a lot to do with the number of places it was sold. Despite how YOU might buy a car (lots of online analysis and examining of figures I am guessing) there are a very large number of car buyers that purchase by visiting, or talking with a car dealership.
Why? For a number of reasons. They may have friends or relatives that work there, or they may have had a good experience in the past at the location. They may be trading in their old vehicle or taking it in for service. They might just drive by and see something on the lot. They might see an ad in the local paper or online. Locations sell a lot of vehicles. Don't believe me? Find a successful dealership that isn't on a main road.
This ability to buy a vehicle at more locations is why you see so many joint dealerships like Jaguar/Land Rover or VW/Audi/Porsche. These super-centers allows a dealer to sell a wider variety of vehicles and it allows the manufacturer to move more product.
My prediction in the Netherlands is that the luxury winner will be the Audi and the value winner will be the Nissan Leaf. Their products are competitive enough, and their dealer networks are extensive. The Kona may do OK, because people prefer a compact SUV to the Leaf's body style, but once the big-battery Nissan is available, it will win that segment.
I predict the Model3 will have a rough time. There just isn't enough showroom space and local network to fight the competition. I'm not sure people will want to drive past 10 Audi or 9 Nissan dealerships to buy a Tesla.
Any thoughts?
*Note: I counted (manually) the number of dealerships on Google Maps. I could be slightly off.
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