Electric vehicles and advanced technology trends are increasingly impacting the automotive space, but customer service and satisfaction still remain a key recipe for dealer success.
The nature of change in the automotive industry has occurred at an increasing rate in recent years. In large part, change is no longer a case of if or how, but rather a matter of when.
Trends have been established in a number of key areas and new car retailers, and those close to the industry, expect many of the current trends will continue — the first and foremost being more electrification.
Worldwide, more than 2 million electric vehicles were sold in 2018 and there is no sign of slowing down. A report by Bloomberg NEF predicts annual electric vehicle (EV) sales will increase to 10 million in 2025, rise to 28 million in 2030, and reach 56 million by 2040.
In Canada, a clear and rather remarkable trend has been established: EV sales are virtually doubling each and every year. In 2016, a total of 11,000 units were sold; in 2017, the figure climbed to 19,000, and in 2018 EV sales surpassed the 44,000 mark. There is no question that, as auto manufacturers continue to electrify more of their offerings, and as more truck and SUV product are developed, the prospect of EVs will be an even more attractive option for drivers.
Emerging technology is another aspect of the auto industry in which consumers are seeking the very latest — particularly if it contributes to greater comfort and greater driver and passenger safety. The advent of steering avoidance, automatic emergency braking, lane departure warning, road scanning, and rear seat alert are just some of the innovative features that are becoming common-place.
OEMs are moving from being a hardware provider to being a hardware, software, and in many respects, an experience provider.
Moving forward, it’s anticipated the next wave of safety features will include, among other developments, facial recognition software to ensure drivers keep their eyes on the road, and vehicle-to-vehicle connectivity, which has the potential to make our roads even safer in the future.
Where automobiles used to be our escape from the world, the driving experience is now one in which we are better connected than ever before. OEMs are moving from being a hardware provider to being a hardware, software, and in many respects, an experience provider. As a result, auto manufacturers face the pressure of ensuring their products allow us to be increasingly productive and entertained in a manner that meets our unique needs.
Of course, one of the other trends (which is sure to further develop) is that of online shopping. Armed with their smartphones, consumers are never far from the information they need to feel comfortable with their purchasing decisions. While this presents a challenge, it also presents an opportunity as new forms of innovation enable new car retailers to understand the unique needs of each prospective buyer — including their buying history, preferences, and online behaviour, all of which may help navigate a sales transaction.
While many of the current trends are dictated by advances in technology, the recipe for dealer success hasn’t changed; at its core the focus remains and to some extent will always be: customer service and satisfaction. The future ultimately belongs to those who can marry new developments with a thoughtful, intelligent and passionate approach to customer service.
