Understanding the Automotive Industry’s Digital Transformation
The tendency toward digitization has emerged. For clients, everything has become conveniently accessible, from apparel to estate planning. Since the market is always changing, digitization in the automotive sector has become essential. Digital tools must be used in manufacturing and sales if someone wants to dominate the automotive sector. By embracing and implementing digital transformation in their industries, numerous businesses and people have already optimized their processes. The use of digital technologies in cars will significantly rise over the next few years.
You have come to the right place if you want to learn more about the automotive digital revolution but are unaware of it or don’t know much about it.
Overview of the automotive industry’s digital transformation
Utilizing or exploiting digital tools and technology to improve operational efficiency and boost customer interaction is known as “digital transformation” in the automotive business. Automobile manufacturers have begun using digital tools in manufacturing, marketing, and retailing as a result of the disruption that digital technology has caused in the automotive sector. The car sector has gradually made progress toward enabling the physical and digital worlds to coexist. Since the digital transformation of the automobile sector has been emphasized by many large, well-known organizations, one cannot advance without being inventive.
What is Automotive Manufacturing’s Digital Transformation?
Simply described, it is a technique for implementing digital tools and procedures that would improve industrial efficiency and cost less in manpower. The digital transformation of the automotive industry makes it possible to streamline production. Automation and robotics are already used in manufacturing by car firms. Digital technologies now make it possible to keep an eye on the machinery and spot problems or errors before they arise.
The manufacturing process is given more emphasis through digital transformation, which also enables production planning optimization and the determination of whether quality has to be improved.
What is Automotive Retail Digital Transformation?
Nowadays, those who are interested in buying cars acquire information from many digital sites. Automotive retailers may now provide clients with a unique and interactive experience thanks to the automotive digital transformation. Through the use of digital tools, merchants may offer improved user experiences on online platforms. Because of The interactive tools offered by digital transformation, it facilitates attracting and keeping new clients.
Automotive and Industrial Digital Transformation: Its Importance & Benefits
You already know that digitization is essential for expanding your company in the automotive sector. Businesses may now access more clients who are interested in purchasing cars thanks to the automotive digital transformation. However, they have also been able to shorten the manufacturing process and lower production costs. Automotive industry participants must contend with fierce rivalries. So, the secret to winning this race is invention.
Thanks to digital transformation, it is now much simpler for businesses in the automotive sector to adopt new manufacturing technology and track what their rivals are up to.
If you’re still not convinced that the automobile industry can benefit from digital transformation, perhaps the following information will persuade you:
1. Being present on online platforms
Retailers in the automobile sector can more easily reach a larger audience thanks to a strong online presence. Customers today are all online, so having the correct tool and plan is essential.
2. Improved Client Experience
You must offer your customers a distinctive experience if you want to keep them interested. Utilizing digital tools and technologies aids in the creation of customer satisfaction strategies. Customers now have a better in-car experience thanks to some cars’ built-in connectivity and infotainment systems.
3. Enhanced product quality
The use of digital tools greatly simplifies quality control during the manufacturing process. It enables real-time data collection and enables producers to spot faults and make the necessary corrections. Finding the manufacturing quality issue and making recommendations as needed is made simpler by digital simulation and virtual data.
More open communication between clients and dealers is made possible in the automotive sector by digital tools. Customers can now access every single car detail online thanks to the automotive industry’s digital transformation, regardless of their physical location.
5. Revenue Increase
You gain a competitive edge by having a strong online presence. They have a lot greater chances of getting contacted by potential clients if you put your car listing online. A website that has been properly optimized may get more favorable reviews.
6. Streamlining Operations
Automation and robotics enhance overall efficiency by providing real-time data monitoring and analysis, improving resource utilization and productivity.
Digital Transformation’s Effect on the Automotive Industry
Manual and direct work were preferred in the traditional way in the automotive industry. At the time, manufacturing, marketing, and retailing required a human brain and workforce. Traditionally, manufacturing cars took longer than now since everything from the engine to designing and putting all the pieces together took a manual workforce. The decisions regarding what changes needed to be made in the manufacturing were made on the basis of what the manager was seeing in the physical presence. The cost of production was high compared to now since it took more time and effort to manufacture automobiles on a larger scale.
All the data regarding how much input is required in manufacturing and the output numbers were kept in a book, which sometimes got lost or some wrong numbers were added due to human error. Even after manufacturing, the marketing and retailing were done through door-to-door sales, informing and finding out more about customers by physically reaching out to different people. But slowly, the industry evolved, and new machines were built that automated the work during the manufacturing process. However, the automotive industry entered the digital transformation later on when different software, especially, was made to understand how well the car engine was performing.
Advent of Digitization
Digital tools and visual data started playing a major role in new strategies in the modern digital era, and the traditional model was left behind. Manufacturers started evolving, and since AI and much new software started to develop, new designs and models of cars started to show up on the market. The digital transformation of the automotive industry has allowed manufacturers to be more creative and develop more efficient designs.
After this, the retail side of the automotive industry also adopted digital tools. Car retailers started showcasing their lists online and targeting customers through email to reach more customers and get more engagement. To engage them, many automotive retail websites started providing enhanced experiences like virtual car studios or 360-degree car photography.
Trends Towards Increased Digitization in the Automotive Industry
In the 2000s, very few people preferred purchasing a car online, but in recent years, after the COVID-19 epidemic, digital trends and preferences have increased.
1. Increase in searches online
Auto shoppers always keep themselves updated with what is new in the automotive market. They do extensive research on various online platforms. After 2020, the searches for “Car sales will have grown globally by over 60% and are increasing yearly. Searches for “best car under” have grown by up to 80% globally. Almost 64% of auto buyers show a preference for getting information about buying cars online.
2. Preference toward online purchasing
What happens on the showroom floor plays an important role in customer satisfaction. When it comes to purchasing cars, the average time spent at the dealership is around 2 hours and 46 minutes. The longer it takes, the more satisfaction declines. Now, 63% of purchasers say they would consider ordering their car online. 73% of auto shoppers prefer negotiating a purchase, lease, or financing terms completely online.
3. Online launches
Today, many car manufacturers are showing more preference for online launches of their cars. For example, Hyundai showcased its 2021 Elantra through a live stream. Hyundai managed to gain the interest of viewers who were watching from the comfort of their homes. The live stream and the overall walk-around clip gained nearly 800,000 views.
4. Digital technologies in cars
Nowadays, Technology in the automotive industry has made cars more complex and digitally advanced. Many features that are now added to cars were not even invented 20 years ago. Therefore, digital technologies that are now found in cars represent 50% of the total car value.
5. Automation in manufacturing
Today, the manufacturing process and supply chain are streamlined. It has provided more efficiency and reduced the need for manpower. In 1990, the manufacturing plants were just 25% automated. Now it is 75% automated. Furthermore, the defect rates have dropped to 12 per million through digitization.
6. Increased Connected Automobiles
Around 84 million connected cars are on the roads of the United States. In a few years, these numbers will increase exponentially. Thus, the United States is about to become the biggest market for connected vehicles.
Example of Digital Transformation in the Automobile Industry
Currently, we can find many examples that showcase how much digital Transformation has changed the automotive industry, a few of which are:
1. Self-Driving Technology
AI has advanced a lot today. Many automobile companies have already implemented this technology in their cars. Automotive digital transformation has made companies use AI that is capable of driving the car itself and can help the driver reach the destination without him/her having to do anything manually. One of the big examples is the cars that are manufactured by TESLA. But this technology is still going through upgrades since there have been many occasions where these automated self-driving cars have caused traffic problems.
2. Designing Using AI
The digital transformation has allowed manufacturers to use AI to design car models. Machine learning helps gather data from past models and gives newer suggestions on how manufacturers can upgrade their designs. Big automobile companies that manufacture sports cars use machine learning to design the body in a specific way so that the car can perform better.
3. Vehicle Maintenance
New components like sensor data gather information from vehicles in real-time, show the car’s performance, and help identify potential problems. When they need to improve the performance of race cars, many sportscar companies use real-time data to improve overall performance.
4. Virtual Car Tour
Digital retailing and automotive trends have showcased an enhanced experience through their websites. Many retailers now provide virtual car tours that allow digital inspection of each and every detail of the car from the comfort of their homes without being physically present.
How Does SimpSocial Help in the Digital Transformation of the Automotive Industry?
SimpSocial’s expertise in digital solutions for your virtual catalog can provide automotive retailers with a big advantage over their competitors. The impact of digital transformation in the Automotive industry is big, and we, as a group of experts, know how important it is to engage customers.
the solutions we provide with our AI can help you in the long run. Some tools that we provide that can help you in your digital transformation are:
1. Virtual Studio
With this, you won’t have to worry about studio rentals or waste time finding studios made specifically for automobiles. Just click the photos through your phone, guided by our AI system, and then our AI will automatically edit the clicks and remove the background if you want. Later on, add your preferred background to give a more professional look to your car photography. You can add shadows and get rid of the number plate with a few clicks.
2. 360 Car Spin
If you want to level up your digital dealership, you have to provide the car’s details from every angle possible. Our digital tools, assisted with AI, can provide you with detailed 360-degree car photography, allowing you to showcase your automobile from every angle possible. Our AI will also help in providing transparency by detecting if the car has any damages and hot spotting them if they are found.
Our built-in editor is one of the best pieces of software you can find for your automobile photographs. If you want to make changes to the car or add some details to make your car photos more aesthetic for the catalog, then our darkroom is the key to your door.
Digital transformation in the automotive industry brought positive changes in the global market of automobiles. Due to the impact of digital transformation on the automotive industry, the automation industry has become much more fast-paced. AI is providing so much data that now companies can innovate and design with just the click of a button. Who knows what innovations we will see in the future?
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