Digital Transformation Trends In The Automotive Industry
The automotive industry has come a long way with increasing automation. That day is not far when electric vehicles will jam the roads and flying taxis will soar the skies. Customers and businesses alike are embracing the digital revolution, harnessing technology to make informed decisions, communicate seamlessly and elevate the car buying and selling experience. Touching nearly every industry, the global digital transformation trend is on the top of every automotive leader’s agenda.
The automotive industry finds itself at a tipping point where the vehicles, as well as customer experience, are rapidly evolving from physical to digital. As industry leaders tap into customer demands, rethink business models and brave disruptive market forces, the most burning question is how fast and far the automotive industry can vault the path to digital transformation.
Digital car buying experience
Car buying used to be a stressful experience for most buyers, with numerous visits to dealerships, uninformative newspaper ads and back-and-forth negotiations. Today, consumers can research a collection of new and preowned cars and find the best prices and easy financing options before even stepping foot in a showroom. Nearly 60 percent of potential car buyers are under 45 and prefer to purchase their vehicles online. New-age Autotech startups are offering a slew of information and options to customers at the click of a button. By digitizing the purchase experience, the automotive industry is attracting more buyers and elevating the customer experience as well.
Connectivity on the go
In this digital-first world, consumers want to be connected with social media, Smartphone apps, music, maps and work while driving. Essentially, customers do not want to break away from their lives when stepping into a car. Consequently, automakers are striving to build connected vehicles equipped with Wi-Fi connectivity, voice commands and advanced in-vehicle systems that provide a frictionless customer experience. Today, cars are being designed with a plethora of connectivity features that offer customization, digital assistance and interactive user experience.
More electric vehicles
In response to the climate change crisis, rising fuel costs and changing customer expectations, the demand for electric and hybrid vehicles has multiplied. Furthermore, the upsurge in online shopping is driving the demand and sales of electric delivery vans. As a result, all the major automakers are foraying into the electrification of vehicles. According to recent research, electric cars could fully outsell fuel-run cars by 2040. Owing to a shorter ownership period, electric cars are being sold rapidly as well as new ones, which is giving a boost in demand for affordable, preowned electric vehicles.
Interactive showrooms
The outbreak of the global pandemic restricted consumers from visiting dealerships and showrooms. But it also accelerated digital transformation, which enabled the automotive industry to pivot to virtual and interactive showrooms equipped with Virtual Reality (VR) capabilities. Virtual showrooms allow consumers a 360-degree view inside the cars, online car tours and an interactive and authentic car buying experience. Consequently, consumers can virtually tour car showrooms from the comfort of their homes and even get vehicles delivered to their doorstep.
Omnichannel customer experience
As the physical and digital worlds collide, consumers are craving a cross-channel experience that remains uniform across all touchpoints. Digital transformation in the automotive industry has given rise to an omnichannel customer experience. Consequently, automobile players are striving to build a channel-agnostic customer strategy in sales as well as customer care across their physical and online showrooms. Due to this, consumers can now explore a variety of cars online, research and virtually tour them and when the time comes for collection and payment, they can visit physical showrooms to seal the deal.
Final Thoughts
In today’s digital age, automobile players need to embrace technology and innovation to make the most out of new opportunities and disruptions in areas such as connected vehicles and virtual showrooms. Companies must develop a repertoire of capabilities for resilience and responsiveness to ever-changing customer demands and market dynamics. Although the path to digital transformation is riddled with challenges, the benefits of technological advancements and digital transformation far outweigh these challenges. The first-movers are sure to gain an advantage and stay far ahead of new and existing competition.
