Impact of Digitization on Automotive Retailing

This technical report examines the influence of digitization on automotive retailing, presenting findings from a 2024 study by Cox Automotive. The research involved 2,193 consumers, including shoppers and buyers who planned to purchase vehicles within the next year. It details how dealers are responding to the challenges posed by shrinking profits while simultaneously increasing investments in online retailing tools. The report highlights the growing trend of dealers offering complete online purchasing options and the importance of a seamless online-to-offline experience to meet evolving consumer expectations. Consumers increasingly prefer online interactions for significant steps of the purchasing process, yet many face challenges in adopting these digital solutions. The report also discusses the perception gap between consumers and dealers regarding the impact of AI in the purchasing process, emphasizing the need for improved integration of online retailing tools.