7 Ways Technology is Changing the Car Industry
Today’s car buyers are tech-savvy and Internet-connected, with high expectations for how they research, buy, lease, and drive a car. The digital transformation of the auto industry is in full swing as technologies such as AI (artificial intelligence), AR (augmented reality), VR (virtual reality), machine learning, and blockchain transform the way we interact with cars. This transformation is happening across all phases of the car lifecycle: buying, leasing, insuring, renting, reselling, and servicing. As a result, consumers now expect an integrated customer experience across all channels. They also want transparency into prices and maintenance costs throughout their ownership period. Technology has accelerated the adoption of new business models in the auto industry – from ride-sharing to self-financing programs – which has also led to increased customer loyalty and demand for more services as a package deal. These seven trends are shaping the future of car ownership:
AR for the car showroom and dealership
Augmented reality is expected to be widely used in car showrooms and dealerships within the next few years. This will allow customers to see what their car would look like in different colors, with different accessories, and with different interior options. AR can also be used for training and for tech demos, such as how to use a car’s navigation system. AR can help dealerships attract more customers and increase sales. According to one study, 41% of customers who saw a vehicle in AR booked a test drive, compared to only 16% of customers who saw the vehicle in 2D.
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Blockchain to build trust and transparency
While blockchain is best known as the technology behind cryptocurrencies such as Bitcoin and Ethereum, it can also be used in the automotive sector. By tracking vehicles during manufacturing, repair, and servicing, blockchain can bring more transparency and trust to the industry. Blockchain can reduce the likelihood of an accident and car repair fraud. The technology can also help to detect and trace the source of an emissions leak. This is particularly important in light of the VW emissions scandal. A blockchain-based system could detect any tampering with emissions-related equipment. Drivers can also benefit from blockchain, as it can help them to track their vehicles’ maintenance and repairs. This is particularly useful for drivers who don’t have easy access to their car’s history.
VR for a more immersive customer experience
VR is already being used in the retail sector and is quickly gaining popularity in the auto industry, particularly in pre-owned car sales and test drives. VR can be used at the sales stage to provide a virtual walk-through of the car and its features. At the test drive stage, it can be used to replicate various weather and road conditions.
Robotic Disc Servicing
Robot-assisted Disc Servicing (RAD) is expected to become more common as automakers look for ways to reduce the cost of vehicle maintenance and repair. While RAD is not a new concept, it is now starting to gain traction in the industry. RAD systems use autonomous machines and computer vision technology to inspect and repair vehicles’ disc brakes and other drive train components. This technology is expected to become standard on all cars within the next 10 years.
The car industry is in the midst of a digital transformation, with consumers expecting more and more tech features in their vehicles. As technology has evolved, so too have the ways in which we buy, lease, insure, and service cars. The digital transformation of the auto industry is in full swing as technologies such as AI (artificial intelligence), AR (augmented reality), VR (virtual reality), machine learning, and blockchain transform the way we interact with cars. These technologies are shaping the future of car ownership by bringing more transparency and trust to the industry.