Digital technology can not only expand the capabilities of the transport network and distribution of cars, but also radically change them. What place in the online auto sales is the current importers and dealers?
Briefly talk about changes in the distribution of cars, the number of sellers of cars will reduce online sales. And on the distribution of the near future will affect the desire of many potential buyers of car sharing vehicles (car-sharing), and not to the purchase of the property. Change the sales market and the electrification of road transport, which automakers are already preparing to sell directly to customers.
All this was said at the ECG Conference, held in Berlin, member of the intergovernmental panel on climate change (IPCC) Peter Weiss (Peter Weiss). Moreover, all these processes have already begun and are held on the background of falling car sales in the EU.
According to forecasts by PwC, by 2025, approximately 47% sold in the EU vehicles will have an electric version. For comparison, in 2018, the year they were 5.8 percent. After all, reducing CO2 emissions by 80% by 2050, road transport means a reduction in harmful emissions by 95%. This means that if 2015 was allowed emissions to 130 g/km in 2021, this figure will drop to 95 g/km in 2025 – up to 81 g/km, and in 2030 up to 59 g/km. the Implementation of the European plan will force automakers to introduce new technologies that will enhance the value of the car. Therefore, it is possible to predict the demand for new cars in the EU.
To avoid falling sales, or at least minimize them, car manufacturers today are beginning to change their strategies. Moreover, the reduction of harmful emissions (though not as great as in Europe) is planned in other countries. From the USA to China, Brazil and India. This means that will change the global production model, and the largest corporations can introduce new technologies across their enterprises worldwide.
Prices will cease to grow
So, Volkswagen AG today laid the changes in the entire model lineup of the near future. Example – gamma model ID, which VW showed in September at the Frankfurt motor show. There is good news: the car will cease to rise in price and become more attractive to buyers. More precisely – electric vehicles. According to the plan VW, very soon – in about 2023, at a time when Europe needs to act environmental standards Euro-7 equals the price of cars with internal combustion engines and electric cars. The first will be more expensive to comply with environmental regulations. And the second will be cheaper due to improvement of technology and the growth of production volumes. Thus, VW does not only neutralize the problem of rise in price of new cars, but also will accelerate the transition to electric cars. After all, cars with internal combustion engines after 2023 will continue to rise and electric cars to become even cheaper.
A similar strategy of electrifying its model range has General Motors. China 2017 – market No. 1 by the number of electric vehicles. In 2025 every fifth new car sold here will be electric. And by this time in China will be more than 20 million charging stations for electric vehicles. Accordingly, in GM at this time planning to electrify its entire lineup.
These policies need to change consumer preferences towards electric vehicles. And with them must change and distribution system. What it should be, experts have predicted by examining the preferences of buyers in China, the largest market of electric vehicles now and in the near future.
China today is an example for the EU, in the sense that the same path will develop consumer preferences and European potential car buyers. Or rather electric vehicles.
Here are just a few figures, which illustrate well the General trend. Today, 47% of purchases in China are made via the Internet. In 2020 its volume will reach $1.7 trillion. At the same time, 100% of Chinese buyers are looking for via the Internet the products of luxury brands, and 70% – buy it via the Internet.
In 2016 in China, via Internet was sold more than 1 million cars! And, in 2016-m in 1 day “Black Friday” on the website Alibaba sold 100 thousand cars. This is more than is sold in Ukraine for a year. Various automotive groups including BMW, Maserati, Chery ready to open their online shops on Alibaba. But potential buyers – ready to make a Deposit to receive, immediately after the start of sales of new car models. Since last year on Chinese website Autohome works realistic the showroom where the car can be seen in every detail in 360 ° format. Moreover, directly on the smartphone.
And what about the existing dealerships?
For research Autotrader, 52% of Millennials feel uncomfortable in existing automotive dealerships. 64% of Millennials felt the pressure at dealerships, and 49% felt that they want to outwit. And 24% of gen X prefer dealerships alternative channels of buying a car. That is, is the reaction of potential new buyers for existing and used today marketing sales techniques.
Examples of new distribution today show Tesla, Chinese Lynk&Co (a sub-brand of Geely), American Rivian and the online marketplace Amazon Auto. By the way, last year at the motor show in Paris, Hyundai, and this year at the motor show in Frankfurt, KIA, exhibited their new products in gift boxes with transparent walls. As models, only full size. In this form they will come, bought on Amazon Auto.
Despite existing threats, the ECG President Wolfgang göbel am optimistic.
“Never before has change happened so quickly, and tomorrow they will happen even faster,” he said.
However, the ECG members feel prepared. The working group ECG, which has been operating for one year, helps to prepare carriers cars for the future. Together with car manufacturers (OEM) providers has developed a standardized forecasting tool that helps to avoid inefficiencies from both sides. To know what will happen tomorrow – so time to prepare.
Pleased to note that the Ukrainian company AVTOLOGISTIKA, which is a member of the ECG, is also involved in this process. Not long ago, specialists AVTOLOGISTIKA prepared software for the students of the Academy of the ECG. That is, it is those professionals who will be working in the digital future, beginning today.