New Mobility Approaches for Car Dealership Groups to Reduce Complexity and Meet Customer Needs
The Institut für Automobilwirtschaft (IfA) and Deutsche Automobil Treuhand (DAT) presented the "Top 100 Car Dealership Groups in Germany" study (see Autohaus publication Autohaus
from 19.10.23), revealing that the largest groups account for nearly a third of new registrations. However, despite these impressive figures, car dealership groups face considerable future challenges due to changing customer mobility needs and shifting relationships with OEMs. The intelligent combination of rental and subscription models could open additional, independent revenue sources while reducing complexity costs to better meet new customer demands.
Key Challenges for Car Dealership Groups
Erosion of Customer Relationships
Car dealership groups are losing customer relationships to OEMs and online players. The rise of direct sales and agency models by OEMs undermines car dealers' pricing authority and limits access to younger used cars, crucial for competitive inventory management.
Transition to direct-to-consumer models
Modern customers seek flexible mobility solutions beyond traditional buying and leasing. Car subscription and rental models are gaining traction but aren't covered by traditional car dealers' financing tools. This shift threatens the traditional car dealership model, which relies on physical infrastructure and face-to-face interactions.
Fragmentation of Systems
Using different systems for customer and vehicle management, garage planning, rental and subscription and accounting, some of which are specified by the OEMs, leads to inefficiencies. This fragmentation makes cross-platform and cross-location data and process management more difficult. Multi-brand car dealer networks must deal with numerous proprietary and OEM-prescribed systems.
New opportunities through Shared Mobility Solutions
Increased Fleet Utilization and Flexibility
A combined rental and subscription model increases fleet usage by offering more flexible utilization options. In particular, the "activation" of used vehicles and the subsequent utilization of returned vehicles is becoming increasingly relevant under the changed market conditions. This flexibility reduces downtimes and ensures an overall higher profit for the car dealer. Customers can switch between rental and subscription plans as required, which increases satisfaction and loyalty.
Data-Driven Insights
Through comprehensive data analyses, retailer groups can gain valuable insights into product demand and customer preferences. This information can contribute to more informed decisions and strategic planning.
Integrated Systems for Operational Efficiency
Implementing an integrated system that covers all forms of shared mobility and integrates DMS, workshop planning, accounting and other systems can overcome the challenges of system fragmentation. This integration simplifies data management, streamlines operations, and improves overall efficiency.
Embracing Innovation for Competitive Advantage
How do Car dealership groups benefit from One-OS?
One-OS offers a wide range of functions relevant to car dealership groups in an easy-to-use, scalable white-label solution. These include, for example:
- Support of a (de)centralized structure for both multi-brand and single brand companies.
– Stations, users, roles & rights
– Central and decentralized customers
– Central and decentralized tariffs
– Central and decentralized numbering circles and billing
- Station-based offers or delivery for subscriptions
- Central White Label booking website for rental and subscriptions
- Online payment, verification and credit check (B2C)
- Optional integration of third-party vehicles in your own shop or partner shops
Finally, overcoming the challenges faced by car dealership groups requires innovative solutions such as modern car rental services, flexible ownership models and advanced car dealer management systems. By focusing on the digitalization of the automotive sector and using advanced IT solutions, car dealership groups can increase their operational efficiency and remain competitive in the changing mobility economy.
