A recent report reveals that 65% of U.S. vehicle buyers are turning to online channels for their car shopping, prompting automotive companies to adapt with innovative technologies.
In a significant trend reshaping the automotive industry, S&P Global Mobility has reported that in 2023, 65% of vehicle buyers in the U.S. engaged in car shopping through online channels, either partially or entirely. This shift reflects a growing consumer preference for convenience and digital-first experiences in the purchasing process. As many automotive companies adapt to these changing behaviours, they are increasingly exploring innovative ownership models and leveraging advanced technologies, particularly generative AI (Gen AI), to meet the evolving demands of their customers.
Generative AI is proving to be a catalyst for transformation within the automotive sector. By enabling businesses to utilise data more effectively, this technology automates time-consuming tasks and streamlines various complex processes. One of the notable impacts of Gen AI is its ability to enhance customer engagement, making interactions with brands more personal and tailored. Russell, an industry expert, emphasises this potential, stating, “For the auto industry, it’s beginning to improve everything from design and forecasting to manufacturing and production.”
Furthermore, SAP, a prominent leader in enterprise software, is leading the charge in incorporating these advanced technologies into automotive operations. The firm’s solutions, including SAP E-Mobility, exemplify the integration of cutting-edge technologies aimed at fostering more sustainable and efficient automotive practices. As the industry continues to evolve, the implementation of generative AI and other digital solutions indicates a significant shift towards not only enhancing operational efficiency but also reshaping the overall customer experience in the automotive sector.
Source: Noah Wire Services
- https://www.spglobal.com/mobility/en/research-analysis/fuel-for-thought-the-transformation-of-auto-retail.html – Corroborates the trend of 65% of US vehicle buyers shopping online or partially online and the impact of the COVID pandemic on consumer behavior in the automotive industry.
- https://press.spglobal.com/2023-01-19-Americans-appear-ready-for-the-European-car-ordering-model,-according-to-S-P-Global-Mobility – Supports the shift in consumer preferences towards online car shopping and the desire for more of the purchase process to be handled online.
- https://press.spglobal.com/2023-01-19-Americans-appear-ready-for-the-European-car-ordering-model,-according-to-S-P-Global-Mobility – Provides details on how COVID-19 has changed consumer behavior and the increasing importance of digital tools in the automotive retail process.
- https://www.spglobal.com/mobility/en/research-analysis/fuel-for-thought-the-transformation-of-auto-retail.html – Highlights the global trend of online shopping influencing purchase decisions and the role of digital shopping options during the pandemic.
- https://press.spglobal.com/2023-01-19-Americans-appear-ready-for-the-European-car-ordering-model,-according-to-S-P-Global-Mobility – Discusses the specific areas of vehicle transactions that customers wish to conduct online, such as negotiating vehicle price and arranging test drives.
- https://www.spglobal.com/mobility/en/research-analysis/fuel-for-thought-the-transformation-of-auto-retail.html – Mentions the impact of global inventory shortages during the pandemic on consumer behavior and the shift towards digital shopping.
- https://www.sap.com/products/e-mobility.html – Provides information on SAP’s E-Mobility solutions and their role in integrating cutting-edge technologies for more sustainable and efficient automotive practices.
- https://www.sap.com/products.html – Details SAP’s enterprise software solutions and their application in various industries, including the automotive sector.
- https://www.spglobal.com/mobility/en/research-analysis/fuel-for-thought-the-transformation-of-auto-retail.html – Corroborates the transformation in the automotive retail sector driven by digital technologies and changing consumer preferences.
- https://press.spglobal.com/2023-01-19-Americans-appear-ready-for-the-European-car-ordering-model,-according-to-S-P-Global-Mobility – Supports the idea that the automotive industry is adapting to new consumer behaviors and leveraging digital tools to enhance the customer experience.
- https://www.spglobal.com/mobility/en/about-us.html – Provides context on S&P Global Mobility’s role in providing insights and data that help the automotive industry anticipate and adapt to changes.
