Asked if he thought Peugeot’s 5008 SUV would mostly be electric in the UK, Druce was clear that Peugeot would go where the customers were.
He said: “We can flex our production to suit whatever the demand is. However, I don’t want to be a legacy brand. We are a future brand, we’re delivering nearly 6% share in the electric car and van market – that compares to 4% from the legacy market. So, we’re clearly going to want to position 5008 to get towards half that mix being electric.
“I believe there’s two things going on in the UK car market right now. You’ve got the traditional product war between manufacturers to see which is better, but there is an economic war as well, which is linked to the ZEV mandate – and we have the ability, as we’ve already proven, to achieve those targets. Our customers have shown sufficient demand for our electric vehicles, for us to be able to be compliant this year. And we will be compliant next year, and I see that as an opportunity to grow.
“Rather than moving targets, we need certainty. We want the ICE engine ban to come forward to 2030, then let’s have the race! We’ve invested, we’re ready, now I want to race – to see who is going to win the battle! I’m feeling quite confident, as we have a big range of EVs from Peugeot, which makes me think we can make ground on some of the legacy brands.
“When you run a brand, and you bring new product in – you want to grow your volumes, you want to grow your market share – there’s very little point in bringing fantastic product like 5008 to the market just to stand still and move 3008 fleet customers into 5008’s.
“Of course, people graduate through our range – and we want that to happen. But a big proportion of 5008 that I want to sell must be conquest. That is healthy, this is what gives me a healthier future market share.
“We’re in a position in the industry where you can make a step change in terms of market share, the last was 2008 with the scrappage scheme, I think the legislation around EV allows us to make the same step change – and we intend to take it!
Talking of residuals for EVs, Druce believes they have been on a bit of journey.
He said: “At some point the differentiation between generations of EVs will start to normalise – a bit like what we’ve seen for petrol cars over the last 15 – 20 years. This is where every generation of engine is better, but it isn’t a leap forward in terms of technology. I think we’re approaching that point with electric vehicles, where the technology of today is good enough for where the market needs to be.
“Of course, we will continue to work on the cost of that technology, but that will bring stability in terms of residual values. There has been overtrading in the market, with what has effectively been a price war from some manufacturers. This is because in the marketplace right now, there’s a business model around selling credits – no doubt. So, if you put enough EVs out there, your profit will come from selling credits to other legacy manufacturers.
“It is an interesting business model for emerging car brands to take. For us, we want to be self-sufficient, fully complaint, and then rely on the technology of our cars to give us the residual values. Plus, trading in the right way – so no over-trading! And no more than 10% rental mix on any product or car-line.”
