7:27 am, November 3, 2026
The traditional franchise model needs to change if car dealers are to remain sustainably profitable.
That’s the view of Autotrader’s chief customer officer Ian Plummer, who appeared as a guest on this week’s Car Dealer Podcast.
On the show, hosted by Jon Reay and James Baggott, Plummer said he believes dealers should be able to represent multiple manufacturers from the same premises, rather than being expected to dedicate large showrooms to individual brands.
He argued that a multi-franchise approach would allow dealers to spread their costs across more manufacturers and create additional sources of profit.
He made the comments after being asked which five manufacturers he would choose if he were setting up a dealer group today.
‘Instead of doing five I’d probably be doing 10, because I fundamentally think that the franchise model needs to become a multi–franchise model for the interests of the retailers, fundamentally to be able to make more money sustainably,’ he said.
Plummer believes manufacturers also need to rethink their expectations of how dealerships should operate, particularly as the number of brands competing for showroom space continues to grow.
He questioned whether it still made commercial sense for manufacturers to expect dealers to dedicate large premises to their products.
‘Rather than expecting to have a 10-car showroom for a brand that often has 15 to 20 models anyway, you’re never going to fit them all in so why try?’ he said.
Instead, he suggested dealers could make greater use of digital displays, demonstrators and vehicles that can be taken directly to customers.
He also argued that manufacturers should become more comfortable with the idea of their cars being sold alongside rival brands.
‘If they’re a bit braver and accept that there could be competitors nearby and people have done that comparison online anyway, I think that they’ve got much more chance of having a sustainably profitable retailer.’
Plummer said the financial advantages were straightforward, with dealers able to generate income from more manufacturers while sharing the same overheads.
‘It’s got more profit sources across the same core cost base of the same premises, – same light heat power, same rates, rent, etc.’
His comments come as the UK new car market undergoes major changes, driven partly by the rapid expansion of Chinese manufacturers.
Plummer claimed Chinese brands had accounted for effectively all the growth in new car registrations this year, while taking an increasing share of sales from established manufacturers.
He said their combined market share had reached approximately 22% in the most recent quarter, roughly double the equivalent period a year earlier.
‘They are eating away at the volumes as well as the share of many established brands,’ he said.
Plummer believes the influx of new manufacturers is creating opportunities for dealers willing to broaden their franchise portfolios.
Among the Chinese brands he identified as particularly promising were Geely, Changan and Xiaomi.
He described Geely as a ‘powerful automotive group’ with ‘substantial resources’ and suggested Changan could become a stronger competitor as its UK model range expands.
He also singled out Xiaomi, the Chinese technology company preparing to expand its automotive business internationally.
‘Their product stands out like an absolute beacon in the market. So, every dealer that goes there and thinks I really want a piece of that action.’
When pressed to name the manufacturers he would personally represent, Plummer selected Xiaomi, Volkswagen, Renault, Kia, BYD and iCaur.
‘If you’re a smart retailer, you’ve got many eggs in the basket and you’ve got some doing better than others and you can balance things off.’
Elsewhere in the podcast, Plummer warns dealers against cutting used car prices unnecessarily as margins come under pressure, and urged dealers to keep advertising through Christmas as buyers begin searching for a new car in January.
The week’s top news stories are also discussed, and you can watch the podcast at the top of this story or listen to it through your favourite streaming services, including Spotify and Apple Podcasts.