The Australian and global automotive industry is in the midst of major changes as the new era of automotive operation takes affect.

Original Equipment Manufacturers (OEMs) are making drastic changes in their product lines as predictions state that 2019 will see lower new car sales, higher interest rates and decreasing vehicle affordability. Other technological factors such as autonomous and electric vehicles have also introduced major disruptors for car dealers and the wider automotive industry.

Because of this, dealers are looking at changing business models and are advised to maintain focus and seize opportunities when they arise.

This includes maximising customer opportunities through their CRM database with triggers including services, warranty or upgrades.

In addition to this, as consumers become more comfortable with online shopping and expect 24/7 access, dealers should consider offering an online click and collect or delivery sales process, similar to Google or Amazon.

Other opportunities could see dealers adopt a no negotiation method for pricing and financial options as well as a seven day (100km limit) return policy. Again, this is due to consumer shopping behaviour.

Dealers that take these steps may be able to avoid the disruption experienced throughout other traditional retail sectors.

Source: Inside Small Business: Automotive Industry in a ‘perfect storm’ of change and uncertainty

5 Mar 2019