The auto industry is a dynamic sector, and with the dawn of 2023, it’s clear that technology is at its heart, driving significant change. As auto dealers, staying updated with these changes isn’t just beneficial—it’s essential. This blog aims to spotlight crucial technological shifts of 2023 that every dealer should know about.
The year 2023 will undoubtedly be earmarked in history as the year electric vehicles (EVs) took a giant leap. A surge in consumer interest, paired with advancements in battery technology and range capabilities, has thrust EVs into the mainstream. For auto dealers, this trend is a clarion call.
“According to a forecast by BloombergNEF, global EV sales are expected to reach 10 million units in 2023. This represents a growth of 55% year-over-year.”
Preparing for an EV future means revamping infrastructure. It’s about more than just stocking EVs; it’s about creating an ecosystem. Installing charging stations at dealerships, training staff to answer technical EV-related queries, and running promotions on EV models are steps in the right direction. Dealerships that adopt an EV-first approach will likely find themselves at an advantage in the coming years. Transitioning to an electric future isn’t solely about purchasing a new EV; it’s also about addressing the fate of one’s current car. This transition is made smoother with Cognitgo’s ROboT. By diligently scanning the service drive, ROboT provides timely and relevant buyback offers to customers, making their decision to switch to EVs easier.
Additionally, ensuring a steady and efficient buyback process not only facilitates customer transitions but also equips dealerships with a consistent inventory for resale. In this evolving landscape of the auto industry, such streamlined systems become crucial for maintaining both profitability and heightened customer experience.
The car buying experience is undergoing a digital transformation, with Augmented Reality (AR) and Virtual Reality (VR) leading the charge. No longer confined to sci-fi or gaming, AR and VR have found practical utility in auto sales.
Imagine a customer putting on VR glasses and taking a virtual test drive from the comfort of their living room or using AR on their smartphone to visualize how a car would look in their driveway. Dealerships that have implemented these technologies report increased engagement and higher sales. The future of car sales is immersive, and AR and VR are the keys to this new world.
Artificial Intelligence (AI) isn’t just a buzzword; it’s the backbone of the modern customer experience. From AI-powered chatbots that answer customer queries round the clock to algorithms that offer personalized car recommendations based on user behavior, the applications are vast and varied.
For auto dealers, the adoption of AI can also streamline operations. Predictive analytics can forecast sales trends, helping dealers manage inventory more efficiently. In an industry where understanding customer preference is gold, AI provides actionable insights that can boost sales and enhance the overall customer experience.
E-commerce has revolutionized how we shop, and the auto industry is no exception. 2023 has seen a noticeable shift towards online auto sales, with many customers bypassing traditional showrooms altogether.
For dealers, this shift poses both a challenge and an opportunity. The challenge? Building a robust online presence. The opportunity? Tapping into a wider audience. Dealers need to invest in user-friendly websites, online advertising, and digital sales strategies. Virtual showrooms, online booking systems, and seamless e-financing options can set a dealership apart in the digital age.
Safety is a primary concern for car buyers, and 2023’s vehicles come equipped with an array of features that would have seemed futuristic a decade ago. Advanced Driver Assistance Systems (ADAS), like automatic emergency braking, lane departure warnings, and adaptive cruise control, are becoming standard offerings.
“A study by Edmunds found that vehicles equipped with ADAS systems can sell for up to 10% more than vehicles without ADAS systems.”
Auto dealers have a pivotal role in marketing these features. By organizing workshops or webinars, dealers can educate potential buyers on ADAS benefits. An informed buyer, recognizing the value of these safety features, is more likely to make a purchase.
If there’s one challenge that has been consistent, it’s the strain on the global supply chain. From semiconductor shortages affecting car production to delays in auto parts, the auto sales industry hasn’t been immune.
For dealers, this has necessitated a shift in strategy. Embracing just-in-time inventory management, diversifying supplier bases, and using predictive analytics to forecast demand can help navigate these turbulent waters. While these challenges test resilience, they also foster innovation and new ways of doing business.
In conclusion, 2023 is a testament to the rapid technological strides the auto industry is making. These changes, from the rise of EVs to the adoption of AI, are more than just trends—they’re markers of a new era. For auto dealers, recognizing and adapting to these shifts isn’t optional; it’s fundamental to ensuring sustained success in the industry.
As we steer through 2023 and beyond, the auto industry’s landscape will continually evolve. But one thing remains constant: the need for dealers to stay informed, innovative, and adaptive.
