The days in which established OEMs have independently set the tone in the automotive industry are over. Four megatrends are revolutionizing the business: connectivity, autonomous driving, sharing economy and electrification. Every single one of these trends is powerful, but their combination is profoundly disruptive.
The game is changing. Inspired by their experiences in other industries and the rise of new technologies, customers are seeking a new, modernized automotive sales journey. Especially young customers are increasingly dissatisfied with the way cars are currently being sold.
New disruptors such as Tesla, NIO and Canoo have responded to the changing market environment, offering innovative vehicles at affordable prices. Most importantly, however, their transformation of the customer’s journey of buying a car into a simple and convenient experience is posing a tremendous challenge to OEMs.
This is forcing legacy OEMs to reimagine their sales strategy and retail network to meet future customer demands and maintain their competitive advantage.