New car buyers have never been more spoiled for choice, with thousands of models to choose from across a huge array of brands. But don’t get used to it, because change is coming.
As the car industry transitions to an electric future, it will allow brands to reset and refine their product offerings. The underperforming models will be dropped, and the focus will be put onto the cars people buy in volume.
Don’t take my word for it, Alfa Romeo global boss Jean-Phlippe Imparato believes the same, saying the Italian brand no longer has any interest in matching the likes of Mercedes-Benz and BMW model-for-model, dismissing the suggestion that multiple body styles (known as ‘top hats’ in the industry) will continue to be the norm.
“I don’t need to catch-up, I don’t care about catching up,” Imparato said. “I will have five cars [in the showroom]. I don’t want to have 25 ‘top hats’ – the salesmen are unable to sell 25 ‘top hats’ – I will just focus on one launch per year.”
While you could argue that’s an unsurprising response for a man who would need billions in resources to build 25 ‘top hats’, his logic is proven by the sales figures.
BMW currently offers 22 models in the Australian market and has sold 12,502 cars in the first six months of 2023. In contrast, Tesla offers two models and has sold 25,577 new vehicles in the same period, more than double BMW.
The BMW situation is compounded by its rapidly expanding line-up of electric vehicles, with new ‘i’ variants being added to its portfolio on a regular basis, such as the recent iX and 5 Series-based i5. As a legacy manufacturer it needs to maintain its broad line-up despite many only adding incremental sales; seven models have sold less than 100 examples in the first six months of the year.
For newer car makers, such as Tesla and fellow US upstart, Rivian, they are able to start with a clean sheet and only cater to the market sectors that are in-demand. So, while Tesla has potential to expand its line-up with the much-delayed Cybertruck, the reality is the brand is in no rush to offer more models in Australia given the demand for its current pair.
Alfa Romeo is a brand in a unique position, with a long heritage but with only a small range after years of fluctuating fortunes. This leaves them positioned to effectively start fresh, with Imparato planning to introduce a new range of electric models by the end of the decade but capping it at around six or seven models with a focus on premium positioning and price.
“Going up,” Imparato said of his strategy. “The only way out for Alfa Romeo is up, I cannot go into the battle for €35,000 [models], this is not my job… This will be the battle with the Chinese [car brands]. But this is not my point, I have to go up. For that I must be stable, renewing the cars, switching to electrification and being top in terms of quality.”
In many respects, this is a return to the old days. Rewind 20 years and BMW offered just eight models in the Australian market, centred around its core trio of 3 Series, 5 Series and 7 Series. But the customer shift towards SUVs as well as the industry’s development of modular underpinnings created a rush of new models – both SUVs and other variants.
The example laid down by the likes of Tesla, MG and Isuzu, which are able to sell in high volumes with only minimal products could become more commonplace as we move deeper into the electric era.
Keyword: Why you'll have less cars to choose from in future: The electric car era is changing the way car makers operate and that will mean fewer models | Analysis