Farmer Autovillage taking EV leadership role

This story first appeared in the december issue of evtalk CLICK HERE to download the magazine FREE

 Originally starting as Bay Nissan, a single franchise employing around 12 people, Farmer Autovillage in Tauranga is now a multi-franchise car dealership taking a leadership role on electric vehicles.

Farmer Motor Group managing director Mike Farmer says Bay Nissan started in 1991 and won Nissan dealer of the year for the next seven years.

It was rebranded to Farmer Autovillage in 2008.

“When we opened the Autovillage in 2008, it became a multi-franchise one-stop shop facility able to provide a vast selection of new and used vehicles on a convenient shopping platform representing 11 brands,” Farmer says.

Farmer took on the role of group managing director in 2004 and later purchased half the company.

Previously, he worked in the finance industry in Auckland as the national sales manager, then moved to Tauranga in 2000 to take over a dealer principal position of the Subaru brand.

The dealership sold EVs for a significant period of time before EVs truly took off, which he says is what we are seeing in the market at the moment.

At that point, the uptake was minimal as the selection was limited – similar to Australia’s EV market.

“We’re enthusiastic about EVs,” Farmer says.

“A lot has been driven from what’s been available for supply from our manufacturers.”

A key factor holding back EV sales is the limited multi-segment selection from a new car standpoint, Farmer says.

“However, with what is planned from our manufacturers over the next three years it will most certainly change the EV buying landscape.”

Farmer says customers buying EVs are exceptionally knowledgeable about the product, having researched them and knowing what they want specifically in the current EV selection.

He calls them the “early adopters”.

“The key change will be when somebody wanders into a dealership and them not knowing much about EVs and end up driving away in an EV.
This most certainly will occur as the EV segments expand.

“People are wanting EV cars at this point, however, they’re still looking for more options to consider.”

Farmer says this is hard with the selection and supply availability, but he says that will change rapidly in the next few years.

“The time will come and it will turn very quickly.”

When talking about the difference between selling internal combustion engine (ICE) cars and EVs, Farmer says the key challenge the industry faces is knowledge.

“Knowledge about how many kiloWatts (kW) per hour, how you charge, regeneration, real life range etc, giving correct information to the customer is first and foremost the most important factor.

“In terms of sales techniques, the ‘early adopters’ are extremely knowledgeable and know exactly what they want.

For the people still unsure what vehicle to purchase, we need to be able to give them the correct information.

Which we can do, as all the training has been provided.

“However, with the movement of this technology at this rapid pace, this commitment to training will need to be relentless from the industry.”

Farmer Autovillage is taking an EV leadership stand in the Tauranga/Bay of Plenty area.

It’s installing a 50kW DC charger and potentially a 175kW DC charger, with which an Audi e-tron will be charged to 80% in about 22 minutes.

The charging project has been a massive investment for the company, at a project cost of over $400,000 – half provided by an EECA contestable co-funding.

It will be on the Farmer Autovillage site and available 24-hours, due to be completed mid-2020.

Farmer commends Tauranga dealerships that handle pure, used EVs.

“They’re 100% focusing on EVs.

I applaud them.

However, until we have significant improvement in segment selection, ICE vehicles may have to be part of the stock mix for these dealers,” Farmer says.

He believes the shift will come – the question comes down to timing, and when people are comfortable enough to make the change.

It was only eight years ago people would visit a dealership four and a half times on average before they made the purchase.

Now, it’s 1.5 times, thanks to the power of the internet making information available.

“The internet is certainly providing information,” Farmer says.

“[Dealers] are not showing clients a vast range of different models.

People have narrowed it down to a specific segment.

But they may be comparing our vehicle with a model that is the same segment in another brand.

“The day we get customers not knowing what they want to buy, when they are choosing between ICE and EV, that’s when we know that the general public are starting to really put EVs on their shopping lists.”

New EVs make up 5% to 7% of new vehicle sales at Farmer Autovillage, but Farmer predicts by 2022 it will be up to 10-15%, and up to 25% in 2025.

“Every single dealership needs to be openminded and accepting of the technology,” Farmer says.

“I think it’s exciting.

The motor industry has not seen such significant change in the last 100 years.

“The next 15 years will represent the most significant shift in the history of our industry.

“And if you’re not willing to accept and adapt to that change then this is not the right industry for you.”

Farmer donated a Nissan Leaf towards The Kollective, a co-working space dedicated to the success of not-for-profit, social enterprise and charitable organisations.

General manager Gordy Lockhart was searching for an EV in line with their sustainability goals for members to use as a shared transport solution.

Farmer donated a Nissan Leaf for its members, complete with brandings, to help its charitable organisations be mobile.

“It’s a pleasure to be able to support The Kollective.

Their innovative approach to business and business platforms is also what excites us here at Farmer Autovillage,” Farmer says.