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Challenges and Trends for Dealerships in 2024 

2024 brings a set of challenges and trends that will define a new path for the automotive industry.

Understanding how this landscape is evolving is crucial for creating business strategies and for being prepared against the changes to come. 

Data will continue to be a protagonist 

Data is becoming increasingly pivotal in the dealership; marketing campaigns can no longer succeed without segmenting audiences, analyzing customer journeys, customer habits, the best moment to place calls, and creating personalized content for each customer. To achieve this there are two requirements: having the data and knowing what to do with them.

This concept continues to expand in different departments and for different roles within the dealership. Today, managers within the dealership require KPIs and metrics to know the impact of each action and to make decisions based on real, immediate and reliable data. Data analysis will play a key role in every dealership, and that will require time to acquire analytical skills and generate measurement habits. 

EV revolution 

The growing adoption of electric vehicles will reshape not only the way vehicles are sold but also how services and repairs are offered. These changes will demand investment, specialized training to understand the new kind of buyer, and staying fully informed about the continuous evolution in this innovative line of vehicles. 

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EVs in agricultural and construction equipment 

Agricultural and construction dealers also need to ready for these changes; in September of last year, New Holland launched the T4 Electric Power, John Deere launched an electric garden model, and announced the development of electric machinery; Case’s Electric Farmall 75C won awards at the Farm Machine 2024 event. These milestones are paving the way for EVs to continue gaining traction in these industries. 

Shopping experiences that continue to move online 

The maturity of the contactless experience is advancing, moving from face-to-face interactions to a digital process. This not only transforms the way sales are conducted but also poses challenges for customer loyalty, retention, and overall experience.  

Customers now expect platforms that allow them to start the purchasing process (search for products, check price and availability, ask questions, read reviews, etc.). 

Although the purchase of digital vehicles is not implemented uniformly across all regions and markets, the trend seems to be moving in that direction. 

Rise of AI 

Undoubtedly, AI is a contemporaneous revolution being applied and tested in various processes such as purchasing, selling, and production. The automotive industry will not be an exception; for example, chatbots and tools that calculate ideal times to call leads are already in use, emphasizing the need to closely monitor developments in AI. 

AI applied to the automotive industry 

  • Chatbots in the vehicle sales processes 
  • Predictive maintenance 
  • Voice assistance in vehicles 
  • Autonomous driving 

A new sales model 

All over the world there is talk about the direct sales model, i.e. manufacturers selling directly to end customers. For dealers, this change would mean, among other things, the greater prominence of after-sales and customer satisfaction. 

It will become key to have a profitable after-sales department that generates revenue, works efficiently and profitably, and that also builds loyalty and retains customers. 

After-sales will be a fundamental pillar of the dealership.