Episode 10 with Ian Plummer: Auto Trader, EVs, and the Retail Revolution

The automotive industry is undergoing a major transformation, and few have their finger on the pulse quite like Ian Plummer, Commercial Director at Auto Trader. In a recent discussion with Chris Kirby on the Auto Futurecast (in association with Tomorrow’s Journey and Asset Finance Connect), Ian unpacked the biggest trends shaping the future of mobility, from the evolving electric vehicle (EV) landscape to the power of data and changing consumer expectations across UK automotive retail.

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A Career Built Across the Ecosystem

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Ian joined Auto Trader after a diverse automotive career spanning manufacturers and retail,from strategy at Renault Nissan’s Paris head office to hands-on experience with Volkswagen and UK retail groups. This breadth, he believes, gives vital perspective across the entire value chain: "If you’ve sat on both sides of the fence, you understand the pressures OEMs, retailers, funders, and even government face,and can deliver more meaningful partnerships across the ecosystem."

Today, Ian’s remit at Auto Trader covers deep relationships with the sector’s largest players,franchise dealer groups, OEMs, lenders, brokers, chargepoint operators, public sector, and beyond,giving him a unique vantage point on the industry’s biggest challenges and innovations.

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The EV Challenge Moves to the Mainstream

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The future is electric, but the EV journey remains complex,for consumers, manufacturers, and retailers alike. Ian confirms: “Electrification is the single biggest industry challenge right now, and it’s a behavioural shift that asks people to rethink decades of established patterns.”

The market is evolving rapidly. While mass-market adoption remains just out of reach, momentum is building: more than one in five new car buyers on Auto Trader’s platform are now considering an EV. Crucially, affordability is improving,Ian points out that the average price gap between ICE and EV models has dropped from 36% to 23% in the last year. Greater volume and diversity in the entry-level segment, especially as smaller, more affordable EV options increase from just 9 to 34 models, is fuelling this shift.

Still, cost remains a barrier. Salary sacrifice schemes have supported fleet EV uptake, but the used EV market brings new challenges and opportunities,such as increasing availability of sub-£10,000 Nissan Leafs and Teslas, helping expand electric motoring to a broader audience.

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Depreciation, Longevity, and the Multi-Life Vehicle

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EVs introduce new dynamics in vehicle lifecycle and value retention. The market initially saw steep depreciation as volumes rose and demand plateaued, but Ian highlights how equilibrium is emerging. “Last year, second-hand EVs on our platform turned faster than other fuel types,once pricing reached parity, retail demand kicked into gear.”

EVs’ longevity also presents unique opportunities: batteries outlast interiors, and future value may increasingly lie in battery refurbishment and recycling. Upcycling and multi-life models for vehicles could transform both consumer economics and sustainability.

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China’s Pace, Innovation, and the Rise of Autonomous Tech

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Ian’s recent visit to the Shanghai Auto Show underscored one lesson: the global centre of gravity for automotive innovation has shifted decisively towards China. “The sheer scale, speed, and quality of vehicles on display was breathtaking,the market there is now larger than the US and Europe combined, especially in EVs and battery tech.”

Chinese brands are setting the pace,affordable, high-quality EVs with impressive tech and customer feedback loops built into product development. The battleground now? Not just price, but technology,especially autonomous features, advanced infotainment, and over-the-air software updates as standard. “Whereas European cars still make some autonomous features optional, Chinese models treat these as baseline expectations, and are leapfrogging ahead with Level 2+ systems and integrated AI.”

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The Hybrid Digital-Physical Retail Experience

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Even as models evolve, customer experience remains key. Despite the promise of direct-to-consumer (D2C) sales, Ian maintains that the franchised dealer remains crucial,especially in an era of product complexity and heightened consumer expectations. “Retailer groups are remarkably resilient. Over decades, profitability in the sector has hovered around 1.5%, despite seismic shifts like lockdowns, digitalisation, and the move to agency models.”

Dealers must respond to waves of digital disruption,streamlining tech stacks, improving system integration, and giving customers more control with digital-first touchpoints, from online bookings to seamless handovers. Data resulting from these improved digital journeys,such as a 50% increase in test drive completion when users book actual vehicles online,offers huge untapped value for process optimisation.

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The Retention Revolution: After-Sales and Used Car Loyalty

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As the market evolves, the focus on retention,especially recycling customers into new agreements and nurturing long-term loyalty,becomes ever more urgent. Subscription and flexible leasing models shift the relationship from transactional to ongoing management throughout the vehicle lifecycle.

Yet, Ian points out, there are significant gaps,especially in used aftersales retention, where most retailers excel in new car loyalty but miss opportunities to extend the relationship beyond the first sale. With EVs requiring 40% fewer service interventions and more brands entering the market, mastering aftersales engagement can mean the difference between growth and stagnation.

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Key Takeaways: Adaptation, Data, and Partnership

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Ian’s insights underscore a sector defined by adaptation, data, and the relentless pursuit of smarter, more customer-centric models. From accelerating the EV shift and supporting new business models, to integrating tech and redefining aftersales, industry players who invest in meaningful digital transformation and data-powered collaboration stand to thrive.

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