The automotive industry is always changing, making keeping up with trends a matter of survival for many businesses.
With new technologies bringing various changes in the automotive landscape, auto sales and service businesses are searching for new opportunities to connect with customers in meaningful ways.
In 2024, there are more ways than ever to connect with your customers effectively. Marketers in the automotive industry have various options that allow them to pick the ideal moments to connect with consumers. From hosting product launches and corporate events to social media and digital marketing, there are tons of options to choose from.
However, if you want to develop winning auto sales and service strategies, you’ll need to identify and understand current industry trends. Through these trends, you can build impactful relationships with existing and potential customers that can last for many years.
Ideally, to continuously connect with consumers amidst industry shifts, you will need to create plans that address changes as they occur.
In this article, we’ve explored seven anticipated automotive trends to help you plan and strategise for the success of your business. With our help, you will be able to identify and utilise valuable market insights, improve customer experiences and enhance your profits.
Without further ado, let’s get started!
1) Understanding the Power of Software
With the automotive industry experiencing rapid transformation, many vehicles are becoming fully connected, and their software is becoming more advanced. To adapt to this change and provide effective service, auto repair workshops have adopted garage management systems.
A garage management system allows garages to streamline their operations. This software helps business owners to effectively monitor workshop performance and optimise vehicle diagnostics. Additionally, it also enables technicians to conduct remote diagnostics and provide 3-dimensional videos to better explain vehicle issues.
Alongside the service industry, the advancement of software in cars is also impacting the automotive sales industry. With more “smart” vehicles, the expectations of buyers are shifting towards a need for seamless integration of technology and driving.
Modern car software has had a significant impact on buyer decisions. They are now influenced not just by physical car parts and visual attributes, but also by software capabilities and the potential for future upgrades. For these reasons, the power of software can’t be overlooked in the upcoming years.
2) Adapt to Expanding Marketing Budgets
Automotive marketing teams have long been under pressure to justify their budgets. For this reason, it is essential to track individual campaigns as well as the overall customer journey.
The rise of digital platforms and targeted online advertising has resulted in businesses allocating more resources towards effectively reaching their audience.
However, while many car sales today begin online, the majority of them still occur at dealerships. Many also still prefer calling a dealership to receive information regarding availability, pricing or arranging a test drive. As a result, your physical marketing efforts at dealerships, such as custom printed flags, signs and banners, play an incredibly important role in attracting customers.
This expected expansion in marketing budgets will allow you to utilise a two-prong approach that prioritises both digital and traditional marketing. This strategy will help your business stand out in a competitive market and connect with potential buyers, wherever they are. It will also help drive more sales and form long-lasting customer relationships.
3) Accept the Slow but Steady Rise of EVs
One of the biggest auto market trends that has recently emerged revolves around electric vehicles (EVs). Many future-forward manufacturers no longer wish to be associated with cars with poor fuel economy ratings and aim to be at the forefront of change for their industry.
With the world focusing on embracing sustainability, EVs have become the definitive future for automobiles across the world. In the future, the focus of the auto market is expected to shift towards popularising EVs as the preferred automobile.
Having finally understood the need for sustainable automotive options, companies are expected to launch more EV models to offer a greater variety.
Alongside increasing focus on the marketing and selling of EVs, sellers also expect an infrastructural boost that will ramp up the adoption of EVs. With the UK government pushing back the deadline by which consumers are required to buy EVs to 2035, the regulatory landscape is also witnessing significant shifts.
In the automotive market, you need to be transparent about educating your customers on the benefits and disadvantages of EVs, based on their driving needs. This will help you win consumer trust along with success in the market.
4) Acknowledge AI Emerging as a Go-To Tool
The automotive market is expected to integrate AI into its marketing to transform multiple operations.
For example, with the assistance of generative AI, marketing teams can analyse massive digital data dumps quickly and efficiently. AI can also translate offline data into insights that better showcase the effectiveness of marketing campaigns, leading to more sales.
With AI-driven predictive analytics, you’ll be able to sort and assess data at tremendous speed and swiftly gain insights about consumer needs and expectations. This will significantly benefit your business in future campaigns. Additionally, AI tools such as chatbots are expected to be utilised to provide personalised customer experiences and support human interactions.
5) Personalisation Is a Priority
AI and data analytics are expected to help many auto sales and service businesses provide customised and targeted experiences. With the help of technology, you can analyse customer motivations and preferences and incorporate the findings into marketing campaigns.
Personalisation is a massive trend that will help build strong relationships with your target audience and create smooth omnichannel customer experiences. Data from online and offline interactions helps move your automotive marketing strategy forward by helping personalise your marketing ideas.
When it comes to personalisation, avoid using third-party data as it is no longer considered reliable. Instead, consider utilising lead generation forms. These forms allow you to capture data from high-intent buyers in a few clicks, without interrupting user experience.
6) Expect a Surge in Online Sales of Vehicles
Digital platforms provide easy access to detailed information and comparisons between multiple automobiles, allowing for better purchase confidence. The transparency and convenience of these platforms mean that more customers are turning to online sources for information when buying a car.
However, it is not just information they are seeking. Many consumers across the globe are expected to turn to online car buying within the near future. For that reason, you need to start building and refining your online presence.
Through large digital platforms such as YouTube, social media and assets like your website, you can meet buyers wherever they are. When buyers can quickly find the information they are looking for, they’re likely to take the next step and book an appointment or test drive.
7) Video Is Experiencing Unstoppable Growth
Buyers want to see businesses create more videos. It is estimated that at least 4 out of 10 car buyers in the UK use YouTube in their purchase process.
Many top automotive dealerships need to consider growing their presence on video platforms such as YouTube, Instagram and TikTok. Video is considered one of the best mediums for storytelling, an element that is extremely effective at capturing buyer attention.
Videos also provide a realistic experience of the vehicle itself. With videos, buyers can see cars in action, without physically travelling to dealerships. Alongside being used to share technical information, you can also use videos to elaborate on how your product would improve buyers’ lives.
To Wrap Up
As auto sales and service businesses navigate through uncharted environments, having a plan for adapting to a changing market is essential.
By using all the tools at your disposal, prioritising customer experiences and measuring results, you can build strong consumer relationships and keep your business at the top.
The fundamentals of auto sales and services remain largely the same, it is how you build on these fundamentals that will truly matter in the years to come.