Honda UK Is Planning to Increase Emphasis on Fleet Sector with Launch of EVs
In an effort to increase profitability Honda UK is preparing to shift focus from the retail to the fleet sector.
FleetNews recently reported that Honda UK is going to make some dramatic changes in the way they do business. Despite making some fantastic vehicles Honda has been suffering significant losses in the UK market for many years. Back in 2014 they launched a five-point plan to return to profitability. Part of that plan involved drastically reducing the number of dealers.
The goal is to cut the number of dealer sites down from 160 to just 100. Now another part of the plan is coming into focus. And that is that Honda UK is looking to shift focus from the retail sector to the fleet sector.
As it stands now the ratio of Honda UK sales is 80 percent retail and 20 percent fleet. The goal is to move that ratio to 65:35 or even 60:40. The launch of more EVs is what the manufacturer believes will help make this transition easier.
The idea is that the fleet sector has a bigger appetite for electric vehicles than the retail sector. And Honda UK plans to play to that. Honda UK currently has one all-electric vehicle and three hybrids. By 2024 the company plans to launch four more electrified vehicles.
Profit
We all know money talks and all companies look to maximize profit. Honda UK is no different. Jean-Marc Streng, president – managing director of Honda (UK) said that the brand has fixed its pricing policy to improve profitability by model.
No specific dollar amounts were quoted; however, the amounts are clearly substantial enough to justify the change.
Motability
For those not familiar, Motability is a charity in the UK. The basic concept is that Motability enables those with disabilities to a car, scooter or powered wheelchair using disability benefits. Honda UK has cars available to lease through that service and they seem keen on keeping and growing that relationship.
“We have a strong relationship with Motability, we absolutely intend to continue that, and we intend to continue with a sustainable level of corporate,” said Rebecca Adamson, Head of Automotive for Honda (UK), in a recent press statement.
EVs Changing the Game
It is obvious by now that electric vehicles are changing the face of the automotive industry. This recent announcement is just another example of that. While an EV might not appeal to all car enthusiasts, it is perfect for fleet use. Aside from the obvious gas savings the maintenance requirements on an EV are much lower.
For a vehicle that is in fleet duty that is a major advantage. The EV is the perfect way for Honda UK to increase their footprint in the fleet sector. We all want the automaker to do well and this latest strategy of increased EV offerings for the fleet customer seems like a solid plan.
It might not be sexy to talk about but when the company is profitable it makes it more likely that they offer enthusiasts models like the NSX. And that is sexy to talk about.
Photos: Honda UK
Join the Honda-Tech forums now!
