The impact of the pandemic has influenced how traditional vehicle finance institutions, original equipment manufacturers (OEMs) and dealerships interact and transact with customers as more consumers get comfortable with online shopping.Globally, the rise of Connectivity, Autonomy, Shared Mobility and Electric and new energy vehicles have come to the fore, which combined is referred to as (‘CASE’) technology which is reshaping the automotive landscape and impacting the oil industry said Martyn Davies, Deloitte Africa’s Automotive Leader.
Key insights from the report
Digital emerging as the new normal
The emergence and adoption of digital technologies is changing the retail landscape across industries. The surge in the used car franchise market has led retailers to start creating unique channels to address consumer needs with customised digital solutions.
A move away from the traditional ownership model
Alternative vehicle ownership models such as vehicle subscription and leasing are gradually disrupting the traditional market in South Africa and Mexico, and likely to play a significant role in the future of automotive retail. This business model allows consumers to lease a vehicle in a highly flexible contract basis, with the option to end the contract, swap the vehicle or choose to purchase the car at any point in time.
Evolving mobility ecosystem
Connectivity, Autonomy, Shared Mobility and Electric ‘CASE’ technology has been a major trend in the industry although its uptake is varied in pace and impact across different markets.