Challenges of a Car Dealership

The Car manufacturing industries, just like any other, have got business challenges of its own, which need to be taken care off on a regular basis. Maintaining the current market position while fulfilling the customer’s demand is a tough task when factors like low manufacturing cost, production timing, proper planning, and execution can easily decide your fate in the target market if overlooked. The material and component suppliers make the competition even more severe with constant innovation and delivering better quality parts at the lowest possible level.

Dealers are one of the most prominent partners in the car manufacturing industry who are facing the real challenges to persuade a buyer. They need to interact, convince, and show extraordinary skills to influence a customer to buy the vehicle. Moreover, nowadays customers have the choice of online stores where they can compare prices, know the technical specifications in detail, etc. Therefore convincing a customer is becoming more challenging for the dealership as customers are aware of every detail of vehicles.

Research carried out by a third party shows that 60% of the Auto industry business is done by the existing customers, 11% through the internet and the rest 29% through walk-in.

Limitations of Dealership

  • Mostly rely on Emails, SMS, cold-calling, walk-ins, etc
  • Organising promo drives (which adds extra costs)
  • Lack of genuine data (from conferences and walk-ins)

The dealership challenges get even worse when a vehicle manufacturer asks the Dealers to do the following things that are needed to maintain a company’s competency in the market.

  • Maintaining a high cost of inventory (vehicles displays, stock, spare parts, )
  • Manpower cost (technical, admin and sales)
  • Cost of setting infrastructure facility
  • Real Estate

So, here comes a big challenge for the dealers to find a solution to reduce the operational costs while maximizing the profit.

Today’s market is demanding dealerships to move from a regular, outdated, and low result oriented methods to something new and trendy along with goal oriented. Therefore, to overcome all the above dealership challenges, proposed a customized mobile application solution to stay at customer’s fingertips.

  • Enhance dealership brand value
  • All the details at fingertips (vehicle cost, technical specs, customer queries, )
  • Creating better recall of brands in a long run
  • Book a service appointment anytime
  • Reach out to sales & technical team through the app
  • Create promos for special offers and deals

A dealer can connect with customers sending info of latest model/technical advantages upon its competitors and promote the brand without incurring additional cost through mobile apps.