Executive summary
The increasing adoption of EVs is dramatically changing the dynamics of the automotive market. Customers increasingly demand speed, convenient transactions and transparent pricing. Many automotive OEMs, dealerships and finance companies recognize that direct-to-customer (D2C) sales are the way forward, but are still working on the intricacies of the model.
Despite the disruptive nature of these trends and their potential impact on revenue and profitability, many OEMs, dealers and finance companies are not well prepared for digitalized sales due to their lack of digital capabilities. The new sales channel requires new capabilities and significant investments in the technology. At HCLTech we believe that these players can proactively focus on building the capabilities and flexibility that will prepare them better for future sales and growth.
At HCLTech, our point of view is that to succeed in this digital transformation, automotive players need to:
- Digitalize key sales processes
- Digitalize dealers and experience centers
- Enhance ecommerce and retail capabilities
- Modernize the IT landscape and tools
- Develop a differentiated, seamless customer experience
These areas will benefit from digital technologies such as the cloud, advanced data analytics, generative AI, IoT and others. Digital technologies, along with business process redesign and flawless execution, will help OEMs and dealers succeed in the D2C sales model.
Pain points include the lack of several factors:
A clear buying process: Many consumers find car buying confusing and sometimes frustrating. This is usually due to their not understanding what can be done online, in person and through self-service, as well as where they need input from a dealer, manufacturer or finance company.
Searchable inventory: Consumers find it difficult to search inventory across multiple local dealerships, and they’re frustrated by the limited information on dealership websites.
Pricing transparency: Digital customers expect discounts such as rebates and incentives to be integrated into an offer. Dynamic and time-bound pricing also impact purchasing decisions.
Test drives and flexibility in returns: Online consumers need experience centers that allow them to see and test drive vehicles before committing to a purchase. More flexible return and exchange policies would also incentivize them to buy online.
End-to-end online financing and payment systems: Dealers and finance companies using legacy tools and processes create hurdles in the purchasing experience. A marketplace-based approach with multiple options will create more trust and more sales.
A seamless, omnichannel customer experience: Due to multiple handshakes between various systems and processes, an omnichannel experience is often lacking.
