EV disruptors, such as NIO, have successfully achieved a step-change in customer engagement by developing DTC strategies that sell directly to end customers through brand-owned or agent-managed stores. This marks a significant departure from OEMs’ traditional dealer-led sales model. In an era where customer engagement is king, the direct model is beneficial because it enables OEMs to connect directly with their customers and ensures that prices are set across touchpoints, thereby eliminating the problem of opaque pricing identified in our surveys.

OEMs are being forced to compete not just on the product but also on the business model and specifically the channels they sell their products on…OEMs are responding to this challenge at varying speeds with varying success. Just to maintain their current position OEMS need to re-examine their business models, refine their operations and identify strategies for future growth.