With the rise of autonomous vehicles, expect the automobile industry to embrace more innovative digital and unconventional sales models in the coming future.
Manufacturers are keen on delivering the best automotive technology to consumers at a fair price point. This has led to increased strategic partnerships with external tech companies like Google, Apple, and Nvidia to accelerate and integrate software updates into their product roadmaps. TechCrunch reported that between 2011 and 2016, M&A transactions in the automotive space totaled over $220 billion.
Image source: phys.org
Distribution channels are changing fast as well, evidenced by big companies like Porsche and Cadillac going into their Porsche Passport and Cadillac Book program, respectively.
As increased online browsing becomes the norm among consumers, the demand for digital solutions among car companies has immensely increased. According to a 2016 survey released by CDK Global, 90 percent of car shoppers prefer beginning the buying process online rather than in-store. Dealerships will need to quickly adopt internet-driven technologies to accommodate new requests.
Image source: system-concepts.com
At the core of all automotive industry trends is the rise of autonomous and connected vehicles. Experts predict that as early as 2030, fully autonomous vehicles will become the predominant means of transport and travel for the masses. An estimated total of 10 million self-driving cars will be on the road by 2020 and the number of networked cars will rise 30 percent per year. By 2020, it’s seen that one in five cars will be connected to the internet.
Real estate developer Gene Bernshtam is also a member of the Ferrari Club of America (FCA) and is the secretary of state for the Lamborghini Club of America in Illinois. Gene has won many awards for participating in judged classic automotive concourses all over the country. For similar reads, check out this blog.