Electric vehicles (EV) are driving the electrification of the European auto market.
In the U.K., for example, 16% of all new car sales in 2022 were battery EVs, which according to Rui Ferreira, CCO at London-based EV subscription service Onto, points to a strong growth trajectory in a relatively short period of time.
Read more: EVs Buck Trend for Declining Auto Production in the UK
The sale of EVs in other European markets is also soaring, with plugin EVs making up the majority of sales in Germany (55.4%) for the first time in December of last year, per a report by CleanTechnica.
For Ferreira, this points to a positive outlook even in current market conditions: “When it comes to EVs, both by regulation and also by consumer interests, we’re seeing a very large proportion of growth,” Ferreira told PYMNTS in an interview.
It’s the reason why Onto, which recently secured a £100 million ($123.9 million) credit facility, is betting big on the sector and the potential it has to drive the switch to sustainable mobility.
Founded in 2018, the London-based car subscription firm offers customers a monthly subscription which covers EV rentals from Onto’s 25-model electric car fleet, complete with a comprehensive insurance package, maintenance and servicing benefits.
But per Ferreira, the company’s competitive advantage is the access users have to public charging stations at no extra cost, an offering made possible through a partnership with British-Dutch oil and gas company Shell.
“Where we are truly unique is that we also include free public charging, so our customers have the ability to charge for free as part of the package and across 11,000 chargers in the U.K.,” he noted, adding that the goal is to make mobility easy and accessible for all.
According to Ferreira, the European automotive industry is going through an important transition, with evolving regulatory frameworks driving electrification across the region.
Competition in the space has also intensified over the years, with foreign manufacturers — first the Japanese and then the Koreans — playing a key role in the industry’s growth. “And now we’re starting to see the Chinese coming into the European market with pretty strong capital and very competitive products,” he added.
At the same time, he noted that the vast majority of manufacturers in Europe have terminated their franchise agreements with dealers as they pivot to an agency model that allows them to sell directly to consumers.
“That in itself is again another huge change which is disrupting the traditional retail network footprint in terms of how franchise dealers perceive the market and the investments that they’ve made into these facilities and brands,” he said.
Those changes, as well as original equipment manufacturers (OEMs) having to adapt and optimize older processes, are proof of a dynamic and fast-changing industry which requires that platforms like Onto are strategically placed to succeed, Ferreira explained further.
Moving forward, that will mean growing its fleet of 7,200 EVs and expanding to other European markets, starting in Germany, all while keeping flexibility at the heart of its business strategy to sway users who are still on the fence about EV adoption.
In fact, he pointed to their fully digitized subscription process as a key differentiator, taking users about 20 minutes from downloading the app, taking a photo of their driver license, adding their credit card details, and choosing a vehicle of their choice which is delivered to their house in 72 hours.
“It’s a very different process than if I had to go out and buy a car and commit to a big upfront deposit and a 36-month lease, for example,” he said.
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