Automotive Trends to Look For in 2022
Change has always been part of the core culture for the automotive industry. The world is witnessing one of the most interesting evolutions in the make and sales of automotive vehicles. Customer preferences are changing year on year. The need for smart and sustainable mobility solutions is growing by the day. Technology is accelerating, and new market opportunities are emerging. The industry is not maturing but transforming into a new space of mobility offerings.
Dealerships are actively keeping up with the latest technologies, upgrading operations and retail channels, and exploring new business models. We see a prominent shift from an asset-based to an experience-based system for automotive dealerships.
Here are some trends transforming the automotive industry.
Trend #1: Electrification
The desire to see more EVs on the roads calls for infrastructure that supports such developments. Besides infrastructure, the majority of EVs that we currently see on the road are considered luxury vehicles, which are above the desired price point for many. In order to gain traction in this direction, the volume segment must catch up, and the desired price point for prospective customers must be considered. We should expect to see this resolving by the coming 2-3 years as technological advancements are ongoing in the EV sector, specifically driven by improvements in batteries. Also, with support from the government, we are seeing more charging stations across the UAE, paving the way for sustainable vehicles.
This is a progressive sector, and the journey to realizing carbon neutrality in mobility is off to a good start. Looking at markets around the world that are leading the way for EVs, cross-industry collaboration, public-private partnerships, and the right policy frameworks are some of the critical elements for cities to build a supportive EV ecosystem.
Trend #2: Autonomous cars
The promise of driverless technology has long been enticing, and the possibility of cars driving themselves is now becoming a reality thanks to cross-industry collaboration and technologies.
We are seeing more and more innovative manufacturers taking considerable interest in the potential of self-driving technology. This new generation of vehicles are designed to appeal to a tech-savvy demographic.
Many more countries have also gained interest in this magnificent innovation, with the UAE recently joining in. The TXAI project was unveiled last year in Abu Dhabi for trial as the first fully autonomous taxi as well as a ride-sharing service. At EXPO 2020 Dubai, an autonomous vehicle was placed on trial, and this complements the efforts to spread the use of autonomous vehicles in the region.
While it has the potential to transform our experience of commuting and helping us build the cities of the future, lowering carbon emissions and paving the way for more sustainable ways of living, I recognize that much still needs to be improved as more trials come forth in order for driverless technology to become mainstream.
Trend #3: E-commerce sales
In-person purchases in car dealerships have been the major source of revenue for a long time, but the automotive industry has learned quickly that they must meet consumer demands for a digitally enhanced experience when they are researching, purchasing, and operating a car.
There has been a noticeable rise in sales of automobiles online. We at Al Masaood Automobiles have a virtual, live, and interactive sales platform that has enabled us to connect closely with our customers. We have since sold more cars from digital leads than we have done before.
The Road Ahead
At the heart of the business remains our customers and this phase marks the opportunity to create more value for them.
At Al Masaood Automobiles, we are always inspired by new ideas, technology, processes, and trends. We always strive to be ahead of the game and to this end, we continue to build strategic partnerships that bring positive change to the mobility scene of the country.
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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