Over the years, auto dealerships have evolved from just an interface between OEM and customer to individual entities giving 360 buying experience to customers. A lot of efforts is being put by auto brands to realign their business model in India and dealerships are always at the front of it. In the luxury vehicle segment, the role of dealerships become even more prominent due to the higher ticket price. We got in touch with Ajay Yadav, CEO AMP Motors, a luxury vehicle dealership chain to understand the role of dealerships and how they have changed over the years. 

Role of a dealership in the auto ecosystem?

India's automotive industry is a price and experience-sensitive market. For an average Indian, buying a luxury car is a dream. Car dealerships are stairways to that dream. Only in a car dealership does the customer understand where and why they spend their hard-earned money. Hence, it is the car dealership's responsibility to be as transparent as possible.

Car dealerships are the gateway to new information for returning and potential customers in the current automotive ecosystem, which is evolving rapidly. They essentially keep the business going while ensuring that the consumer gets the best out of their investment in terms of products, deals, experience, and service. 

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How have dealership’s evolved over the years?

The next time you go to a car dealership, especially if you are going after a long time, you will see quite a difference. The stereotypical car dealerships are long gone. A car dealership is now a guide, making your car buying process simple and hassle-free. Online queries are the king in the post-pandemic world, and dealerships have taken their inventory online, making buying a car a relatively simple process. In the future, too, we believe that hard-selling techniques would be replaced with kinder customer and experience-focused strategies.

Has the shift to EVs changed dealership infra requirements?

For a country like India, which is at a very early stage of Electric vehicle adoption, car dealers have an important role in deep knowledge penetration. In addition, electric vehicles are projected to increase a dealer's repair and service business. Car dealerships would also get the duty of becoming charging station providers, which would also open a new stream of income for them.

Overall, it seems like a win-win for all. In my opinion, one setback that dealerships could experience is the high cost to the customer that EVs at large would bring. In a country where the middle and upper-middle class are majority consumers, purchasing high-end EVs with a big-ticket size could be a hurdle.

How will dealership model change in the coming years?

As automotive technology advances in the coming years, we anticipate the dealership model will evolve alongside. The focus has shifted from the car's look to its overall features, the infotainment system, and more. This has forced dealerships to have more complex conversations with customers to further understand their lifestyle and purpose of buying the vehicle. Luxury car dealers are preparing for the future, keeping one thing in mind, the time of trading an old car for a new one has shortened and will keep decreasing in the coming years.

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