Warren Richards first tells us how supply is almost back to normal following the recent chip shortage. He says: “We’re back to six to nine months as a standard delivery time. We’re number three in true fleet, with Q4 e-Tron now, and that’s on the back of us being able to supply those cars. So, I think the issues we’ve had in logistics and supply chain are definitely getting back to normal now. We’ve still got a few issues to sort through, but we’re definitely back there.
“With the range rationalisation, what it does is reduce the number of options from 600 to 400. If you’re a customer, it makes it more straightforward to be able to decide what they want and all the options that they really want on their car. This is just a much better customer proposition and takes the complexity out of it, making it more enjoyable and easier to do business with us.
“The option packs have a residual value, so those two things together make it a great proposition for fleet and for fleet drivers, as it simplifies the range and makes it easier for everyone to understand.”
Richards shares that he’s got a great team of area fleet managers that are real experts in the fleet world, and he sees them as fleet consultants helping customers to make the transition to EVs by 2030. He says: “They work closely with fleet managers and leasing companies, to help those people understand the transition from ICE to BEV, take questions and give support. Thus, giving some confidence to fleet managers that aren’t so sure about making the move to BEV.
“We’ve also got a great network of local business development managers that are in each of the Audi Centres – that can get out into local businesses – to have those same conversations. I think we can help with the transition and if I look at the customer base, 82% of our customers have made that transition in some way to BEV vehicles. The remaining 18% are a mixture of either investigating BEV or are on the journey, with our teams working really close with them. Or they’re not ready to make that decision, or some will decide later.
“I think most have done it, but this transition is a big one. At Audi fleet we do what we’ve always done and look after customers and try to answer their questions in the best possible way and offer them support. Like we said from the start, fleet is all about relationships, working together and making sure we give confidence and information as the manufacturer to our customers who have questions about it and help them make the decision that they want to make.
“Fleets running five cars, they have a relationship with the local Audi centre, or big national corporates, or international corporates even, that might have a relationship with the key account manager and everything in between. We see our job as to be easy to do business with, and to help our customers make the right decisions for their businesses.
“Ultimately, we’re not here as Audi Fleet for the short term or to sell cars in a particular month, we’re here for the long term, and long-term development. Audi’s been at the top of the fleet game for several years, and we want to continue to do that. Our aspiration is to be number one in true fleet, we’ve been lucky in the last two years to do that, and we’d love to maintain it. Not just because we want to sell cars, but because we want to look after customers and give them the best proposition for their fleets.
Richards says that BEV interest has gone through the roof since Audi launched the Q4 e-Tron, and thankfully now they are back to normalised lead times – it is obviously their current core BEV fleet model. He says: “It has been a hugely interesting time for fleet drivers, partly driven by the way the government have structured the BiK, and partly because drivers are genuinely interested in the vehicles. We’ve got a healthy order bank and good orders that are coming through, so we’re number three in true fleet at the moment.
“With the Q8 e-Tron arriving, plus the Q6 e-Tron at the back end of this year, with A6 e-Tron in both Avant and saloon, I think we’ll really capture fleet user-chooser drivers and managerial roles. Also, salary sacrifice drivers will be hugely excited by our offering.
“We want to hold on to current Audi fleet drivers and keep them on the Audi journey, but I do think these new models are an opportunity to capture new customers and enthuse them about our products and the quality. With these latest products coming through, a lot of new customers will take a look. Not only drivers – but fleets as well. We’ve got about 1,200 contract and fleet customers now, and we fully intend to keep them happy, and look after them in the best possible way. We would definitely love to expand, and get more customers on board to come with and form part of Team Audi and be part of our journey.
“We are in a fortunate position and there are lots of new competitors in the market, too. We’ve obviously got great products from our traditional competitors, as you’d expect, but a lot of the new entrants into the market – certainly with the Chinese product coming in. I think we’re in a good position to defend our place and we need to treat those brands with the respect that they deserve. Nobody makes a bad car anymore; they’re making fantastic looking cars with great technology. We need to respect that they will come to market and look to take a share. As I said, at Audi we’re in a good spot with customers and new products coming through to hold our position and hopefully grow it.
“The majority of our orders now are BEV or PHEV. There are quite a few A3 PHEVs out there, but the A6 PHEV is still a popular model, but the Q4 e-Tron is by far our most popular BEV model. Around 92% of our order bank is BEV or PHEV in the fleet environment, as you would expect. Of those BEVs and PHEVs, we’re selling more BEVs than PHEVs – but it’s very close.
“I think some people have chosen PHEVs as they’re not ready to make the transition into BEVs, but I think the more that people go into EVs, [the more they] realise that driving a BEV is a great experience. There is a different thought process to having an ICE car – because you have to plan your route a bit more and think that if I’ve got a certain number of miles to make, I will have to make a charging stop. With an ICE car you don’t really need to think about that – there are petrol stations everywhere. I think with that thought process, some people are still on a journey – but that will undoubtably change and as the UK infrastructure improves with more charging stations around, more drivers will make the leap.”
Richards believes that salary sacrifice schemes are giving fleet managers more confidence about BEVs. He says: ” I’ve been speaking to my fleet team, and the transition has already happened in the majority of cases because of this. I think salary sacrifice adds an additional level on top. I wouldn’t see it as substitution, I would see it as an opportunity for people that wouldn’t normally have access to a company car, to get entry to a car through salary sacrifice. BEVs make sense on a salary sacrifice scheme, so it’s an addition. I think it will only accelerate the increase in BEV models in the UK market.”
He believes that the majority of their customers that have made the leap into EVs have done so with their eyes wide open. He says, “They know the range of the car, they know infrastructure set-up in the UK and they’re realistic about what living with an EV is like. I think many people, fleet or private individuals find that the infrastructure could be much improved.
“I think it’s getting there, and some of the perceptions are not as bad as the reality. Our regional fleet teams recently lived with a Q8 e-Tron for five days, and some hadn’t lived with an EV before. Actually, they found EVs can be really convenient – that they found they can be charged while they’re having lunch. Then by the time they’re ready, their car is fully charged. They found things aren’t quite as bad as some of the perceptions out there. There are so many apps out there that can steer you to the right charging points. More infrastructure out there will help people in terms of making the leap from ICE into EV.”
