The bottom-line potential of greater gender diversity in car sales
While women account for 47% of the general UK workforce, the figure is only 20% in the transport sector. At the Society of Motor Manufacturer and Trader’s 106th Annual Dinner in December, the Automotive Council committed that women will represent 30% of its members’ workforce within the next six years – a significant step, given that those members employ some 99% of the UK’s vehicle manufacturing workforce.
Twenty seven companies, including Stellantis, Renault Group, Scania, Ford, and carmakers such as BMW and Kia, committed to the ‘30 by 30’ commitment. The Automotive 30% Club, where MotoNovo MD Richard Jones is a Silver Member, shares a similar ambition alongside other prominent business leaders from across the motor retail and support industry sector.
Women represent a huge proportion of the car-buying population. With over 19 million women holding a driving licence, they make up 48% of all motorists in the UK, a number that is growing faster than men.
In 2022, Auto Trader noted that women owned 41% of all privately owned vehicles, an increase of 17% in the preceding 10 years, compared to just a 9% increase in men over the same period. Their report also noted that women’s perceptions of dealerships led them to embrace online retailing, with 44% of female consumers stating that they would consider buying a car online.
Research undertaken by Carwow last year identified a similar negative car-buying observation. Despite being equally interested in cars and car buying, almost 6 in 10 female drivers felt the car-buying and selling process was still geared towards men.
Innovation and diversity
It appears that a significant opportunity exists to meet the current car buying needs of the public appropriately.
Realising this opportunity invariably means changing the existing model, its processes, and communication. Given the scale of the opportunity, such change might include a cultural shift, but above all, it requires fresh thinking.
In 2018, the renowned Boston Consulting Group published a study assessing diversity from a workplace perspective to establish how it could help businesses achieve their goals. The study of 1700 companies across eight different countries, with varying industries and company sizes, established that "increasing the diversity of leadership teams leads to more and better innovation and improved financial performance." It had a direct effect on the bottom line. Companies that had a more diverse management team delivered 19% higher revenue due to innovation.
If the current car retailing model is not meeting the needs of female car buyers, then increasing diversity, especially at a leadership level, has the potential create change. Fresh thinking will allow the ability to assess the long-established model differently and see the gaps and opportunities that are being missed or underserved.
Given the scale of the female car buying car market, the rationale for change is clear, but diversity isn’t just about gender. It also includes age, ethnicity, sexual orientation, socioeconomic background, work and educational experience. Greater diversity of thought and challenge to the current car sales model can help businesses meet the needs of all these groups as well.
