The Future of Car Dealerships
For most people, buying a car represents one of the biggest purchases of their lives – second only to buying property. Because it is a significant expense, customers are keen to have car dealerships meet their expectations and demand for cars remains strong across the Middle East. However, with several new developments in the market, dealerships will need to consider how to build a new experience for their customers.
Here are my thoughts on how car dealerships can prepare for the future.
Understanding consumer demographics and expectations
Consumers today have better access to information, which means they do a fair amount of research before walking into the showroom. Furthermore, millennials and Gen Z now represent the vast majority of car buyers. Most are looking for dealers that offer a personalized experience, as well as a comprehensive online presence that offers a significant amount of information and interaction for would-be customers.
I strongly recommend car dealerships change the way they think and look at the current situation as an opportunity for change. Auto dealerships can align their operations to adapt to the rapidly changing times by recognizing that consumer expectations have changed, online interactions are growing more important, and there is a demand for a more personalized experience.
One way car dealerships can rethink their operations is by implementing e-commerce options. Online services, like Al Masaood Automobiles’ omni-channel online car buying platform, which is the first in the region, have proven to be game-changing. The virtual sales experience offers seamless interaction between potential car buyers and sales personnel while ensuring everyone’s safety, especially during the COVID-19 pandemic. Most customers will still want to see and drive the vehicle, so booking a viewing and test-drive through an online portal with delivery to the customer’s location is another way car dealerships can create new interactions and opportunities with customers.
The role of self-driving vehicles
The Middle East’s self-driving or smart automobile market is projected to grow at a CAGR exceeding 55% by 2035, and I believe that car dealerships that add self-driving cars to their inventory will tap into an emerging market. However, I also strongly believe that the demand for conventional cars will remain high.
Contrary to popular belief, there is a lot more to smart cars than just ‘plug and play.’ Since these cars come with a lot more instructions, safety guidelines, and maintenance tips, it is easy to see why many people will continue to prefer traditional cars over their “smart” counterparts.
Therefore, though car dealerships may anticipate demand for self-driving vehicles at some point in the future (keep in mind that autonomous vehicles are not yet available for purchase by consumers), it would be more effective to add to the existing inventory of conventional automobiles rather than anticipate full-scale replacement.
Car-sharing apps
Ride-sharing apps give users access to a variety of different types of cars through their mobiles, and all that’s required is uploading the required documentation and choosing the payment option. These apps offer flexibility and convenience, and they certainly have their place for those who cannot, or do not want, to own a car.
However, the driver has little control over what vehicles are available in their area, and sometimes, there are no cars within a reasonable distance. Given this unpredictability, especially in an increasingly fast-paced life where everyone is in a rush, individual drivers will still prefer purchasing their own vehicles rather than relying on car-sharing apps.
Redesigning operations for a seamless experience for the end-user
To stand out in such a highly competitive environment, I believe the biggest question all car dealerships must ask themselves is: “How can I stand out from my competitors by preparing for the future?”
Overall, creating a seamless customer journey will help “future-proof” car dealerships, as will recognizing the opportunities new tech, like self-driving cars and car-sharing apps, bring to the automotive sector. At the same time, we must also acknowledge the fact that driving will remain a fundamental part of most people’s lives, and car dealerships that plan for change will be well-positioned to continue serving their customers for decades to come.
About the author
Irfan Tansel: Global Citizen and CEO of Al Masaood Automobiles
With over 40 years of experience spanning across three continents, Irfan Tansel is recognized as ‘100 inspiring leaders in the Middle East’ by Arabian Business magazine and ‘CEO of the Year’ by CEO Magazine, and he is driven to disrupt the automotive industry and to create a legacy.
Irfan’s passion for automobiles began at the age of 15 when he apprenticed as an auto mechanic. Now an entrepreneurial and visionary leader, Irfan is credited for his unique approach to innovation, employee engagement, and more recently, succeeding in a challenging market. In 2019 and 2020, Al Masaood Automobiles gained global recognition for re-strategizing; creating an omnichannel experience to prepare for Industry 4.0. Al Masaood Automobiles launched the region’s first e-commerce car buying website with Nissan, and a virtual, live & interactive sales platform. 2019 was a record-breaking year with Al Masaood Automobiles selling more cars than ever before.
Under Irfan’s leadership, Al Masaood Automobiles have been awarded numerous accolades. In both 2013 and 2019, Al Masaood Automobiles won the coveted Nissan Global Award, recognizing their outstanding performance and contribution to Nissan’s business.
Renault’s prestigious Global Partners Award (P.A.R.I.S. Challenge), received in 2020, is the highest accolade for car dealerships granted for exceptional performance in customer satisfaction, and in Sales and Aftersales – tapping into new market segments, strengthening the brand, and expanding their portfolio. They reported a staggering double digit sales growth, outperforming other Renault dealers around the globe.
With an unrelenting desire to best serve his customers, Irfan believes that “the road to recognition is built upon a commitment to leave behind the ordinary to achieve the extraordinary”. His competitive nature drives his vision to revolutionise the industry and lead the transition into a future where disruption capitalizes innovation. After achieving his goals and reaching the peak of his career, he is determined to motivate tomorrow’s leaders by sharing his extensive knowledge in leadership.
When Irfan isn’t preparing for a future of disruption, as electric cars, connectivity, autonomous vehicles and ride-sharing come into play, you can find him spending time with his family and playing golf.
For media and keynote inquiries, please email his brand manager Jen at Jen@prestidgegroup.com or call +971 55 719 3601. DOWNLOAD IRFAN’S MEDIA KIT.
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