INDVSTRVS: Car Sellers Must Digitize to Compete with Smaller Players

This article first appeared on INDVSTRVS.

Carro Founder and CEO Aaron Tan says that in the future, the car market will have plenty of competition from smaller dealerships with a heavy emphasis on selling direct to consumers digitally and argues that incumbents cannot afford to be slow to jump on the wagon…

At the height of the COVID-19 pandemic in Singapore, interest in car buying was up due to fears of contagion on public transport. We received triple the number of our regular sales calls on the eve of the circuit breaker itself.

Despite this, once the circuit breaker began and showroom visits and test drives were banned, actual automotive sales in Singapore saw drastic drops of 88 per cent in April and 97 per cent in May alone.

Without an assurance alternative to the hands-on experience, customers were not confident enough to commit to a purchase. The automotive industry’s value proposition needs to evolve beyond the ‘best price’ model – especially for the used car sector.

Digitalisation can bridge the trust gap by empowering the customer with data and allowing dealers to be more transparent. With value, assurance, safety and efficiency now top-of-mind in the purchasing experience, adopting a digital-first approach is crucial for dealers to keep pace with consumers.

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