How to Successfully Promote Your Automotive Business Through Digitalization

Maria Boyarko

Maria Boyarko

Head of the BA Department at Andersen

Business Analysis
Oct 5, 2021
5 minutes to read
  1. Trends that are transforming automotive businesses
  2. Ufodrive — a solution for electric car rental
  3. Digital rental
  4. Simplicity and operability
  5. What we achieved

Modern users are able to quickly master even complex technologies if these technologies can make their lives easier. Customers value the convenience and simplicity of digital transformation. Automotive business owners have realized this and aspire to satisfy the needs of their audiences for advanced technology when choosing, buying, and operating cars. We will share how one automotive business project managed to cover five promising trends and expand its reach to eight countries.

PwC - a company providing IT consulting services - has stated that the car of the future is an electrified, autonomous, shared, connected, and yearly updated vehicle. It possesses characteristics such as mobility, simplicity, and individuality for users. Let's take a closer look at each of these trends.

  • Electrification

Some sad statistics: in 1950, carbon dioxide emissions amounted to more than five billion tons. By 1990, this figure increased to 22 billion tons, and now humanity releases more than 36 billion tons of carbon dioxide per year.

In light of the fact that the world community is concerned about the growth of harmful emissions, car electrification is becoming almost the main trend of digital transformation. Automotive business owners are seeking solutions that will reduce the negative impact on the environment. The idea is to charge cars with electricity generated from renewable sources.

  • Autonomy

The rapid development of Artificial Intelligence, Machine Learning, and neural networks is helping to create autonomous vehicles that operate without human intervention. According to PwC experts’ estimates, by 2030, self-driving cars will account for 40% of sales in Europe. Other studies show that today, there are about 1,400 self-driving cars on US roads, and the number of adherents is growing.

  • Sharing, updateability, and connectivity

Many major cities offer car-sharing services, which affects car sales. Along with the increased use of the vehicle fleet, fewer cars per capita will be required in the future. PwC Autofacts estimates that, by 2030, the number of cars in Europe could decline by 25%.

At the same time, new car models with improved hardware and software will be produced more often. Also, in the future, people will be able to communicate, work, and access the Internet while traveling by car due to the implementation of the connectivity function.

Daniel Newman, the Principal Analyst at Futurum Research, also highlights tendencies towards digital dealing and the use of Augmented Reality and Artificial Intelligence.

  • Digital dealing

Previously, buying a car would take a lot of time. A buyer had to study the advertisements and negotiate with the seller. At the same time, consumers were not completely sure about their choice.

Today, buyers get information about a car on the Internet before they even go to a showroom. This has become possible thanks to online showrooms, such as Audi's virtual showrooms in London, where cars can be viewed in detail from both the outside and inside. Car rental contracts are concluded remotely as well, without a trip to the rental office.

  • Augmented Reality

Augmented Reality technology not only improves user experience and sales but also ensures driver safety. AR gives the opportunity to look through traffic - for example, to notice that a giant truck is driving somewhere ahead of you. This makes driving safer than before.

Among striking examples of implementing digital transformation are the experiences of such companies as Volvo, Mercedes, and others. The Volvo Polestar brand sells its Polestar 1 and Polestar 2 models exclusively online. And Mercedes-Benz uses blockchain to track emissions of gases into the environment.

This experience is applicable to both large companies and small businesses. We will tell you about a project our team worked on. With that project, our customer implemented five of the above digitalization trends at once and carried out effective business process optimization.

Ufodrive — a solution for electric car rental

The Luxembourg-based company Ufodrive rode the digital wave t