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The future of automotive sales

February 24, 2021

RESEARCH REPORT

In brief

Traditional automotive sales models are at risk

Unsatisfying customer journey

Online options are limited and the purchasing experience is inconvenient and marked with breaks between channels.

Inconsistent prices and intra-brand competition

Inconsistent pricing creates intra-brand competition and reduces dealers’ profit margin by 1-3 percent.

No direct access to customers

Without direct engagement with the customer, OEMs lack customer information and truly data-driven sales.

Direct sales: A solution for the future

OEMs have little experience in online sales and are reluctant to push online solutions due to concerns of cannibalizing dealers’ sales.

Creating customer centricity and insights

OEMs need to put the customer at the heart of their operations. They must invest in the right organizational set-up and IT infrastructure.

Leveraging the dealer network

Traditional OEMs’ existing dealer networks are assets, and especially valuable to newcomers. But getting dealers on board is challenging.

Transforming the core to sell in the new

OEMs need to be ready to rethink their business models and revenue sources. Transforming the company’s core is a bold but necessary step.

Time to move

Johannes Trenka

Corporate Strategy & Growth, EMEA Lead

Johannes is an expert in functional growth and automotive sales and digitization strategies.


Further insights on the future of automotive sales

The future of automotive sales in China

For many OEMs, China accounts for up to 50% of their global sales. To stand out, OEMs and dealers must envision a radically new way of selling cars.

Vehicle pricing in the new automotive reality

To survive in an increasingly volatile and ever-changing environment, OEMs need to embark on a pricing transformation journey.