Aion kicked off its UK entry with a mid-April media event, offering a first look at a launch anchored in its dealer network plans.
Motor Trader caught up with Jon Wakefield, general manager for Aion Auto UK, and Aion UK network development director Duncan Johnston. Launching in the UK with the Aion V, the all-electric family SUV, the Chinese brand showcased not just its vehicles but its belief in a dealer-first strategy.
A Jameel Motors flagship Aion retail showroom in Slough will open at the end of May along with the first wave of sites that will eventually grow into a nationwide franchised retail network.
Wakefield says: “In terms of volume what we are not doing in this small segment is shooting from the hips, guns blazing, promising 100,000 units. If you want to build that consumer reputation, more importantly we recognise that the right move to market for the consumer but also for us in the retail sector is to launch a wholesale model.
“What I really want to establish, a success factor for me, is that by the end of the first year we have around about 20 partners but with agreed growth players. And I think for retailers in particular what I’m very passionate about is an opportunity to scale as we scale and not have crossover of single point outlets.”
Johnston adds: “You recruit the right staff, you treat them well, they treat your customers well. Having that cultural alignment, understanding how we want customers to feel and how we want the retail experience to be and also understand where we will go – we are starting small but we will grow rapidly. It is finding those retailers that want to come on that journey with us. There are some who will wait and see how it goes, wait to join the brand once it is established rather than be on that journey.”
“From my perspective, I’ve got to have 25 retail points by the end of the year. So success for me is not just the numbers, it’s actually having the right partners. We’re not just looking to put Aion signs above any showroom. It’s 25 right dealers, not just any 25 dealers, and a platform to grow. As I mentioned, traditionally you need about 100 points of representation to cover the market in the UK – within about half an hour drive time.
“Therefore, what we start off with is a platform of 25 retailers that we can grow to that 100 width. We will add some more long way, of course, but we want to have retail partners that can have multiple locations with us and have great market territories.”
Johnston notes the strong interest in new brands from consumers and retailers alike, highlighting Aion ‘luck’ and ‘fortune’ that it is not the first Chinese entrant to launch.
“There is a lot of acceptance of new brands. But what the new partners like about us is our approach. It’s not just about product,” he explains.
“They like that we are retailer focused because both John and myself worked in retail as well. I presented to a potential new retailer, we got half an hour into the PowerPoint presentation and I had not shown them a car because what I talk about is the team, the people, the brand, what we do, who are GAC, who are Jameel, why we had joint ventures which actually gives us an advantage in many ways.
“The feedback again is that it’s refreshing because what normally happens is you come in with a whole lot of pretty pictures of cars but actually, we’re talking about all things including aftersales. It’s not just about bringing the car to market, it’s about how we can supply the parts, how we’re going to support our warranty, how we’re going to support customers and dealers moving forward.”
Every Aion V will include the ‘Aion Great 8’ ownership proposition which provides eight years of warranty, servicing, roadside assistance and MOT.
Aion’s Great 8 concept is described by Wakefield as ‘unique’ in the marketplace.
He says: “What we want to do is to start to build a reputation and be recognised as being different, per se, but actually people can understand what we are trying to do, That is why we are going to launch under one brand, the Aion brand, not different brands for different cars. We have launched a pure BEV but we will enhance the powertrain mix with other options. We have looked at the consumer requirements for building trust.”
Through Aion’s partnership with the AA, customers will have access to the AA’s nationwide network of accredited workshops and over 100 mobile service technicians for servicing, maintenance and repair.
EV adoption observations
Johnston begins: “If you go onto the internet you will find all sorts of views – ‘EVs are fantastic’, ‘we’re not ready for EVs’, so yes you need someone to talk to whether that’s via our concierge service or via a retailer.
“We are trying to get away from the Top Trumps numbers (kWh, charging speeds), and trying to talk in more general terms of what these numbers mean to the customer. How many trips to work can you make? How much does it cost to run? The price of fuel now is rather extreme but the price of a gallon of fuel used to be around £6. If you are charging at home how much electricity do you get for £6? Well actually, you would probably get around 350 miles worth of electricity for your car. That’s something customers can understand.”
Wakefield and Johnston shared their thoughts on the potential impact of the ZEV Mandate.
Wakefield says: “Whilst we’ll serve the market with opportunity, the ZEV Mandate is forcing the market that isn’t quite ready to be forced. And what that does mean is it is putting an awful lot of pricing pressure on pure BEVs. But when you buy a car like this, which you want to last and live with for a long time, the environment has got to be sustainable so the pressure it is putting on retailers and manufacturers is challenging.
“The reality is whatever legislation is in the market, we have to adapt to work with it as a manufacturer,” he says.
“It is the same in any industry. We have had so many changes in the industry over the years. Clearly at the moment this car and the next car are pure EV but as of next year, as John said, we will start bringing PHEVs in as well. Again, that is because that is what the market is demanding right now. We are an electrified brand rather than an electric brand. And if you look at the market right now, that is exactly what is happening. Some people are ready for EV and some people are not. Some people will buy the PHEV or range extender.”
Brand loyalty, a thing of the past?
“When you talk to retailers, leasing companies and fleet operators it’s really interesting. Customers who would have traditionally been associated with premium brands (Audis, BMWs and Mercedes), they are switching to new entrants,” says Johnston.
“We are being constantly surprised by where customers are coming from. A lot of people are now reconsidering what to use their car for, what’s important to them, the cost of living. We’re not narrowing down our fortress to a particular customer type. It’s more about what they want their car to do. They want something high quality, great space, great adaptability and suits their lifestyle.”
Johnston highlighted the importance of the continuity of people for manufacturers as well as retailers.
He says: “Some of the really successful brands out there, I think someone compared it Premier League football managers. You see the brands who have had the same manager for a long time and how well they are doing because they have dealer trust. The dealers trust them because all brands go through ups and downs during a normal product cycle.
“There are times when you’ve got a product that’s really hot, and sometimes your product is not quite so hot so you have to find ways to keep things going until the next new hot product comes along. Having that continuity of management within the manufacturer is also really important.
The future of AION
When asked what excites him about his role in this launch, Wakefield says: “I think it’s a couple of things, actually. The whole EV piece and the move towards zero tailpipe emissions. It is a complex and really relevant environment to be working in so it’s great to be able to be influential in that space.
“And then, for me, I’ve worked for car companies all my life in one form or another either for a manufacturer or retail groups. And I guess you join something that’s established and moving along but to set something up in the UK and think about how we approach the consumer with a product which is relevant to the demands and the requirements of today’s marketplace, is just too interesting not to be excited about.”
Johnston adds: “There aren’t many opportunities in life to start with a blank sheet of paper, to set things up how you would want to do it. Those opportunities don’t come along very often. We have a very simple philosophy – retailers are good at retailing, manufacturers are good at manufacturing. As we are a new brand, a new entrant to the market, in many ways we are leveraging the brands of those local retailers. Aion may be new to a customer but if they know that local retailer that gives them some confidence.”
Pre-orders for the Aion V start on 23 April through a dedicated UK-based concierge customer contact centre.
CA Auto Finance, the UK branch of CA Auto Bank, has been appointed as the exclusive financial services partner for Aion Auto UK. CA Auto Finance will provide a comprehensive suite of retail and wholesale financing solutions for Aion’s new range of electrified vehicles, which will be branded Aion Financial Services.
Prices for the Aion V start from £36,450 OTR, with flexible PCP offers over 18 – 48 months starting from £379 per month (2.9 percent APR Representative) through Aion Financial Services.
The 75.3kWh LFP battery gives the Aion V 317 miles of range and can charge from 30-80% in 18 minutes.
The vehicle is available in either Wilderness Sand metallic or Arctic White pearlescent paint as standard, with a choice of three further metallic colours (Galaxy Blue, Night Shadow Black and Sea Fluorescent Grey) for an additional £675.
