In the ever-evolving world of trends and innovations, AI technology is redefining the auto industry’s future at a global level. Some of the major technological advancements like EV (electric vehicle), ADAS (autonomous driving assistance system), online sales (virtual car dealership), and intense focus on vehicle safety features are contributing to the industry’s growth momentum and revolutionizing both urban and rural transportation. The global automotive market size was valued at USD 3,566.5 billion in 2022. However, it is expected to grow to USD 6,070.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.9% during the forecast period of 2023-2030.
This article explores how AI is reshaping the future of automotive industry in terms of promotion and marketing; providing valuable insights about future market trends to help businesses achieve their goals.
As the car marketplaces continue to change rapidly, many car dealers selling new or used cars are shifting from optimizing pessimism based on the most recent market research and trends.
Here are two traditional factors of marketing that are limiting automotive dealer profit:
- Traditional marketing channels: Traditional marketing for car dealers includes TV, radio, and print ads.
- Limited audience reach: Traditional marketing methods may have a limited reach and may not effectively target the desired audience.
- High costs: Traditional marketing can be expensive, especially when considering TV and radio ads’ production and placement costs.
- Lack of measurable results: Measuring the effectiveness of traditional marketing efforts can be challenging, making it difficult to determine the return on investment (ROI).
- Inability to personalize: Traditional marketing methods cannot often personalize messages and offers based on individual customer preferences.
- Difficulty in tracking customer journey: Traditional marketing may not provide comprehensive visibility into the customer journey, making it harder to understand customer behavior and preferences.
- Limited customer engagement: Traditional marketing may not facilitate direct and interactive engagement with customers, unlike digital marketing channels.
- Slower response time: Traditional marketing methods can have longer lead times for production and distribution, resulting in slower response to market trends and customer demands.
There are several factors that are driving growth in the car marketplace:
- Consumer mobility behavior: Consumer preferences and behaviors are changing, leading to an increase in shared mobility solutions. This shift in behavior is expected to result in up to one out of ten cars sold in 2030 being shared vehicles, creating a new market for fit-for-purpose mobility solutions.
- Global economic recovery: The global automotive industry is in better shape than it was five years ago, especially in the US and China. The US has seen a recovery in profits and sales following the recent economic crisis, while China continues to experience strong growth.
- Increasing demand for used cars: The global used car market is experiencing significant growth, particularly in the Asia-Pacific region. In 2023, it saw a 3-4% increase in sales, reaching 94-96 million vehicles. The future of automotive industry is projected to grow by 5-6% in 2024.
- Environmental, Social, and Governance (ESG) initiatives: The rise of ESG initiatives has put pressure on automakers to monitor and self-audit their environmental and social impact.
Programmatic advertising with AI at its core allows automotive players to target specific customers with personalized messages at the right time and through the most effective channels.
AI can help create better micromarket intelligence, leading to sales growth and predicting inventory needs and optimal vehicle configurations, reducing the time unsold vehicles sit on dealer lots.
With AI tools, car marketplaces can streamline processes, automate tasks, and make data-driven decisions, from lead generation to customer engagement.
AI integration in automotive sales and marketing enables a consistent and personalized selling experience for customers.
AI can drive the future of automotive industry with innovation and provide immersive experiences by leveraging data and analytics to understand customer preferences and deliver tailored marketing campaigns.
- 100+ Virtual Car Background Options: A vast library of turntable studio, branded showroom, and storefront backdrops to choose from.
- DIY Car Studio Photography App: Create studio-finish car images in minutes with AI Virtual Studio, with guided shoot process and in-app validation to help you click the right images.
- Create a Virtual Car Dealership Experience: Virtual Studio API can be integrated easily to edit your entire online inventory instantly, leading to 80% faster time-to-market.
- Holistic Dashboard to Track and Manage Vehicle Listing: A comprehensive dashboard to monitor and manage every car photograph in real-time.
- Showcase Your Car from Every Angle: Create 360 spin videos in minutes with AI Virtual Studio to display your car from every perspective and inspect vehicle dents & damages.
In conclusion, AI holds immense potential that can elevate your dealership marketing and enhance your customer experience. As technology is evolving, major players in the automotive industry are strategically employing AI technology in their promotion and marketing strategies, giving them a competitive edge in the car marketplaces. Spyne offers a DIY dealership app for 100+ enterprises globally that can be integrated with major DMS platforms for streamlining various aspects of dealership operations and marketing.