New Delhi: The Covid-19 pandemic has acted as a catalyst for auto retailers to accelerate their transition to digital or online sales
An assessment by ETAuto.com of its Top 100 Electric Dealerships list shows that the dealerships of the future are sure to be omnichannel or phygital. For most of the 200 respondents, around 14% of their sales were influenced by digital in the 2020-2021 fiscal year. Buyers and retailers have also been found to leapfrog past generic platforms in the sales process. It is becoming clear that change is necessary to keep pace with new and emerging consumer expectations.
Digital channels in the vehicle buying experience are becoming increasingly important, although offline touchpoints still have a very important role to play, such as the test drive.
Interestingly, the majority of interactions in a dealership today are replaced or influenced by online services and data sharing. Virtualization through Augmented Reality and Virtual Reality helps dealers downsize high-cost real estate. This makes it possible to lighten the physical concessions and lighten the real estate. The trend is global.
Our survey indicates that 56.6% of new vehicle retail sales are made through the traditional walk-in mode. However, recognizing the new trend, dealers across the country increased their use of remote sales tools and online sales channels, which increased digital sales support to 14% during the fiscal year. 21.
We have used AI/ML science to our advantage by understanding customer requirements, presenting to them and avoiding losses. Customers are also satisfied when we do it and so it has become a WIN WIN solution for usSundram Iyengar & Sons Television
“We are progressing in our AI and ML capabilities. We are pleased to say that we have in-house incubated our own AI/ML center where we are able to anticipate our customers’ needs and be at time to serve them. This has been done well over the past two years and we have used AI/ML science to our advantage by understanding customer requirements, presenting to them and avoiding loss. Customers are also happy when we do so it has become a win-win for us,” said TV Sundram Iyengar & Sons, ranked #5 in the ETAuto Power dealer list.
It is quite evident that auto retailers today are trying to address the concerns of car shoppers by doing business beyond their physical presence. As consumers look for ways to do as much as possible online to avoid in-person contact, dealerships are looking for ways to provide them with “shopping alternatives” and are seeing this translate into increased consumer activity in line.
Some OEMs are also experimenting with innovative designs to boost dealer profitability. India’s largest luxury car maker, Mercedes-Benz, has adopted a direct sales strategy for dealers, relieving them of inventory and management costs.
The continued adoption of digital and contactless experiences will have long-term implications that go beyond the sale of a vehicle. Most dealers want to improve their digital retail business even after the pandemic and in the future.
Some OEMs are also experimenting with innovative digital models to boost dealer profitability.~
Overcoming years of inertia and complacency, retailers in large numbers are turning to multiple channels and formats to cater to different market segments. According to our findings, nearly 24% of dealers were willing to venture into multi-brand approaches in FY21. They were primarily influenced by the rise of e-commerce and online marketplaces that are disrupting consumer buying behavior.
Undoubtedly, the traditional dealer channel will continue to play a major role. However, for the freedom and flexibility of customers and to provide a seamless customer experience at all levels, retailers are ready to adopt a multi-channel strategy.
For more insights on the Indian auto retail market, grab your copy now.
Read also :