Special Report

November 27, 2014

Internet Era would remodel the tradition of automotive industry

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Written by: Suhail Nasir
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Internet is focusing on the customer usage experience. How the automotive manufacturers make changes in the product development and marketing?

The internet marketing based on the large data is the mainstream. Whether the criteria from eyes to trade are becoming evaluation for automotive industry? Internet is changing the consumer behavior, the traditional automotive marketing and also sales model. The automotive e-commerce seems to arrive soon.

Dr. Xu David, the EVP of Bosch China means, the Koda with 100 years of tradition didn’t change in facing the new technology revolution in the digital technology era and failed in the market. It is a warning for the current automotive industry.

There is an only way to hold the digital charge in the arm. The traditional industry can have a chance in the market to develop further.

The future automotive technology development has 3 big trends: Electrization, The Internet and Automatization. Due to the internet merger, the whole automotive supply chain is changing from product design, manufacturing to Internet sales and after sales service. “We will find more new players in the automobile industry as IBM, Google, and Apple even Alibaba becoming the new competitors with strong IT advantage.

Nicholas Speeks, President & CEO, Beijing Mercedes-Benz Sales Service Ltd. means the automobile industry is facing new business models in internet era. In the past, the dealer was only one possibility for customer’s contact to the product. Now the companies provide multi-channels for customer’s usage experience, incl. online and offline contacting points merging. In the past, doing marketing through public media to the customers is currently changed into the channel based on the customer preference and providing one to one tailored consuming solution. Using the standard promotion to acquire new customers need to be modified. Companies should provide customers individual solutions and services in the internet life. Comparing to the new car sales and promotion in the past, companies in the future will pay attention to the entire contents from new cars to second-hand cars, from one time service to full life-cycle services.

Under the Internet technology development and the change of policy and regulation, the Internet is taking more influences on buying decision and customers’ desires to purchase the cars online, it is an irreversible trend to sell new cars through Internet. But the online car sales can’t take an upside down change in the automotive industry, said by Qin Zhi, Chief Executive Officer of Autohome Inc, China.

Even the online car sales are an irreversible trend, but the traditional automotive companies are not active. During the communication by Lei Xin, Vice General Manager of Dongfeng Infinity and Nicolas Speeks, they will try more new sales models, but will not directly change to online sales.

Yang Hongzhe, Beijing Auto Link World Technology Co. Ltd said, even the tempo of traditional automotive companies seems slow, they will take the main role in the Internet era.

-Published on page#21 November-2014 edition of MOBILE WORLD Magazine

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