Our world has gone through dramatic changes in the last few decades, and one can only guess what the future will look like. Not only is it important to plan for the next quarter or even the next year, but it is also imperative that you look ahead 5-10 years to examine what the industry may look like.
As the automotive industry continues to shift gears, it is important that your dealership stays on top of what’s to come! In our latest blog, we’ll be taking a look at the technology on the horizon, the shift in consumer behavior and expectations, and finally how your dealership can navigate the changes to come and increase your Fixed Ops profitability with the help of Dynatron!
Impressive New Vehicle Technology
Technology in the automotive industry has been racing toward new advances that cater to nearly every whim imaginable. Perhaps the first advances that come to mind are autonomous vehicles and advanced driver-assistance systems. A survey done by Deloitte LLP showed 67% of consumers indicated a strong desire for advanced vehicle technologies. 43% of these consumers also said they had an interest in self-driving features.
These new vehicle technologies don’t come without challenges, with pricing, consumer acceptance, and safety concerns standing as hurdles yet to be crossed. We recommend capitalizing on these challenges by taking the time to educate consumers during the sales process.
New Vehicle Technologies on the Horizon
When thinking of what specific new advances lay ahead, autonomous vehicles are perhaps what comes first to mind. In addition to this, there are a few other driver assistance and safety systems that are making their way into the market.
- Vehicle-to-Vehicle Communication: Manufacturers have been working on a feature that enables communication between vehicles for increased safety and traffic information using wireless technology.
- Augmented Reality: As sleek interior and exterior designs continue to modernize, you can also expect to see upgraded windshields, dashboards, and more. There are concepts in development that displays essential information on the windshield to inform driving decisions.
- Increased Efficiency: Motors being swapped out for efficient batteries aren’t the only feature of modern cars helping the environment. In fact, energy efficient body panels are in the works that will reduce the weight of your vehicle.
- Advanced Safety: Safety technology has consistently evolved to keep drivers protected on the road. One of the earliest safety features, airbags, could be getting an update! Some manufacturers are trying to develop an active system of airbags that deploy under the car with integrated sensors to send alerts and stop crashes before they occur.
While these are just a few technological advances making their way to production in the next decade, there are consistent developments you’ll want to look out for! Knowing what’s ahead for your dealership’s manufacturer can be an engaging communication tool for existing and potential customers.
Are Consumers Willing to Pay for New Automotive Technology?
Given the rather tumultuous economy, Deloitte LLP’s study found that most consumers are disclosing the amount they are willing to pay has decreased since their last 2014 study. However, Gen Y and Gen Z consumers said they’d be willing to pay a $1,600 premium for a vehicle with advanced technologies.
Consumer Expectations and Behavior
As technology, cost of living, and gas prices continue to rise, consumers have a shifting outlook on mobility and daily life. The last two years in particular also changed the way people work and spend time at home, which in turn changed how frequently they drive or commute to work. Because of this, interest in advances technologies have shifted, along with the way consumers use their vehicles and manage their finances.
Rise of Rideshare
Did you know 25% of the entire U.S. population uses ride-sharing services at least once a month? As urbanization and cost of living continue to increase, it seems ride-sharing will play a pivotal role in the future of local transportation. According to The Verge, services like Uber and Lyft along are responsible for up to 14% of vehicle miles traveled in certain population-dense U.S. states.
Subscription Models
While a subscription model is not new to most consumers, the automotive industry has not yet jumped on the trend. However, some manufacturers like Volvo, Porsche, and Audi have already implemented a subscription model for their consumers. As an alternative to leasing, most subscription plans allow access to multiple vehicles and include costs of insurance, maintenance, and roadside assistance. Removing long term commitments (and cost of ownership) is an attractive option to many consumers, and it’s likely more manufacturers will release their own plans in the future.
How Your Dealership can Keep Up with a Changing Industry
The skillsets you’ll need in your service drive look vastly different compared to 5 years ago. Because of this, your dealership will need to change the way your attract, retain, and train technicians. Engineering and mechanical focused skillsets will still be valuable, however there is already an increased demand for software savvy talent.
Dynatron Software has the technology and coaching your dealership needs to remain focused on the future of the industry. Take advantage of the opportunities in front of you and plan for whats to come with our help!
Sources:
https://www.newsweek.com/8-predictions-about-future-auto-industry-1647470
https://www.forbes.com/sites/sap/2021/05/05/the-future-of-automotive-and-mobility/?sh=142949cd59d5
https://deloitte.wsj.com/articles/the-future-of-automotive-technology-1496894533