Carmakers' e-commerce has hurdles to overcome

BMW became the first car brand to launch a UK online sales platform in 2015. Almost five years on there are fewer than a dozen brands doing the same. And, according to many manufacturers that have, fewer than 10% of their annual new car customers have transacted online.

But the industry has entered a new decade during which automotive e-commerce is expected to increase rapidly. Many individual franchised dealer groups have already started car sales online, and market-leading car marketing portal Auto Trader will, in time, allow consumers to buy from retailers through its website.

There’s a potential challenge for consumers ahead, in the diversity of approaches across the industry. All the car brands that are currently engaged in e-commerce require a franchised dealership to facilitate or fulfil the order, whether as a margin sale or on a handover fee basis.