Disrupted Retail Among the Automotive Industry

March 28, 2019
January 21, 2021
Axiom Admin

As the automotive industry enters a new digital revolution, relationships across the retail setting are being reformed. OEMs, dealers and consumers are altering how they interact with one another since consumers are expecting a smooth and easy experience across both physical and digital touch points.  Automobile consumers are now using manufacturer's digital platforms (published online reviews, online configurator, website, call center, and virtual agents) to educate themselves before purchasing a new vehicle. Dealers and OEMs must reconsider their ways of engagement with new age automobile consumers.

Some major automotive manufacturing companies, like Tesla, desire to sell directly to consumers and cut out the middleman, but this entails various risk factors and state franchise laws makes it difficult for companies to execute as well. This revolutionary technology also provides connected service and maintenance, including predictive maintenance through the use of sophisticated in-vehicle diagnostic systems.

Ubiquitous connectivity and smart components allow the vehicle and some components to proactively signal to the driver when maintenance or replacement is needed. Allowing continuous data analysis to take place creates opportunities for preventative maintenance, reducing critical failures, and the frequency and severity of recalls. Due to the explosion of cheap sensors, this has decreased the cost of predictive maintenance while also enabling next-generation servicing. Presently, vehicles already have technology alerting drivers about needed service visits, but as more sensors are being implemented in automobiles the accuracy of the servicing will vastly improve.  Next-generation service and its digital attributes are changing the entire concept of servicing in who and how it is done. Servicing no long consists of just mechanical adjustments or part replacement; it will increasingly involve software upgrade needs as well. Further pushing the new era of automotive digital revolution.

Source: World Economic Forum White Paper: Digital Transformation of Industries- Automotive Industry

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