The automotive retail sector has some catching up to do when it comes to digitalization


According to a recent study by DEKRA Automobil GmbH and the Institute for Automotive Economics (IFA) , just under 15 percent of all dealers surveyed have a digitalization strategy. “
The result is sobering,” said IFA Director Prof. Willi Diez. “German car dealers are lagging quite far behind when it comes to digitalization.”

According to the study, which will be published in late September 2017 under the title “Car Dealership 2025 – The Future of the Automotive Retail Industry,” only about 3.5 out of a total of 17 car dealerships surveyed currently use modern digital media for sales promotion in their showrooms.
In the area of automotive service, the figure is 3 out of 13. Even in departments typically associated with modernity, such as marketing, the average is only 7.5 out of a total of 21. “Overall, this results in a digital maturity level of 26.4 percent, meaning that only slightly more than a quarter of digital tools are currently used in the automotive trade,” Prof. Willi Diez continues.

The study cites a lack of support from manufacturers as one reason for this alarming trend in the digitalization of automotive businesses. Just 4.1% of the companies surveyed in the study are satisfied with their industry partner or authorized manufacturer in the area of digital media and would like to receive more support. “These figures show that even manufacturers who are strategically well-positioned are not doing enough to help dealers implement this strategy,” said Prof. Willi Diez.

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