Seth Godin, an American entrepreneur and author, once said, “In a busy marketplace, not standing out is the same as being invisible.”
The automotive industry and dealerships are no strangers to this reality. To thrive, it’s essential to have a clear understanding of today’s market and the future on the horizon.
In this article, we summarize the trends, changes, and new habits expected to shape 2025.
1 | The Future of EVs
- According to a Caredge analysis, while electric vehicles (EVs) accounted for between 7% and 9% of U.S. sales in 2024, their growth is projected to be steady yet gradual in 2025.
- The same analysis forecasts an increase in available EV models, from 57 to 70, giving customers more sustainable options.
- Meanwhile, EV.Magazine highlights key aspects of the EV landscape: advances in battery technology, expansion of charging infrastructure, and a broader range of smart charging solutions.
- Additionally, countries face the challenge of preparing their electrical grids to support the rising adoption of EVs, including both personal and public transportation.
#2 | Redefining Buying and Selling Through E-Commerce
- In 2024, the number of in-person dealership visits before purchasing a vehicle continued to decline, and this trend is expected to deepen in 2025.
- In some markets, having e-commerce channels is no longer optional—it’s essential for selling parts, accessories, and even simplifying stages of the vehicle sales cycle.
- AI-powered chatbots and voice bots will play a crucial role in generating qualified leads and closing sales.
- Customers will demand personalized, contact-free experiences, with all the information they need about vehicles and financing available to make informed decisions.
- The boom of augmented reality (AR) and virtual reality (VR) in interactive shopping experiences continues. According to Exploding Topics, 2024 ended with around 1.7 billion AR devices, a trend poised for growth. This technology’s integration into everyday life sets the stage for more immersive experiences, like Toyota’s well-known Hybrid AR app.
#3 | Data-Driven Management
“The main advantage of data is that it reveals something about the world you didn’t know before.” – Hilary Mason, data scientist and founder of Fast Forward Labs.
Data-driven management will play a pivotal role in decision-making for principals, CEOs, and department managers. While data is already used to understand customers, it’s becoming increasingly crucial for internal operations.
In 2025, the gap will become evident between dealerships that rely on real-time, reliable data for decisions and those that stick to manual processes or intuition.
With the 2024 launch of Autologica Analytics, we witnessed firsthand how dealerships uncovered hidden stories within their data. Managers identified financial leaks but also spotted opportunities for investment, sales, and customer retention—all by simply reviewing data each morning.
#4 | Agency Model vs. Direct Sales Model
This debate will continue throughout the year, with brands taking different stances. Will dealerships keep selling vehicles, or will OEMs sell directly to consumers, leaving dealerships to handle delivery and services?
On one side are advocates of direct-to-consumer models, such as Tesla’s approach. On the other, critics argue that this model sidelines dealerships, which have been vital to brand sales, growth, and customer loyalty.
This conflict is evident in cases like Scout Motors, analyzed in-depth by Autoweek.
#5 | Vehicles as a Service
The “pay-per-use” concept has entered the automotive world, inspired by subscription-based platforms like streaming services.
- Some brands, such as Hyundai with its Hyundai Connected Mobility service, offer subscription-based vehicle usage. Liran Golan, the service’s director, explained that this model appeals to younger generations who lack interest in car ownership (source: Auto123).
- In the U.S., Volkswagen is testing VW Flex, which lets customers try popular models like Atlas, Tiguan, and Jetta for a single monthly fee (source: Subscription Insider).
Beyond subscription-based vehicle usage, in-car perks, services, and upgrades via monthly subscriptions continue to mature. For instance, Tesla offers services like autonomous driving, connectivity, and streaming subscriptions.
Can dealerships capitalize on selling these additional services?
#6 | AI to Spend More Time on Customers
AI neural networks are rapidly transforming many aspects of daily life. For businesses, they provide solutions to reduce time spent on manual tasks, allowing greater focus on strategic activities.
Tools like Copilot, ChatGPT, and Gemini can handle repetitive tasks (data tabulation, drafting standard documents, initial chatbot interactions, proofreading, etc.), freeing up time to design creative, customer-focused strategies.
#7 | Training vs. Turnover vs. Retention
- The automotive industry faces a turnover challenge with direct financial implications: thousands of dollars spent on training often fail to yield a return.
- Evolving transportation technology demands greater expertise, technical skills, and safety compliance, complicating recruitment efforts.
- To address this, strategies for team retention and loyalty will become more necessary. HR departments must analyze trends, identify needs, and craft creative retention strategies.
Conclusion
These are just a few of the key trends we foresee for 2025. However, as the automotive industry consistently demonstrates, new needs, habits, and changes will emerge over the months. One thing is certain: staying ahead requires a commitment to continuous progress.
