The future of automotive retail

Staying ahead of emerging automotive retail trends is now a strategic priority for OEM leaders. Shifts in consumer behaviour, distribution models and increased competition across global and new-entrant brands are redefining what a high-performing dealer network looks like.

For OEMs, the challenge is no longer just selling vehicles, it’s building a resilient, data-driven dealer network that can adapt to changing market conditions and deliver a consistent customer experience across every touchpoint.

This article highlights six key automotive retail trends shaping the industry and outlines what OEM leaders are currently considering as they refine network strategy, strengthen retailer performance and look for opportunities for growth.

What defines the future of auto retailing?

The role of digital transformation in automotive

Moving forward, an awareness of automotive retail trends and how to adapt will be crucial. OEM-dealer performance management tools can help by analysing performance and considering evolving consumer expectations. Technological advancements have accelerated, leading to the adoption of the acronym CASE - Connected, Autonomous, Shared and Electrified. Recently, this has evolved into CASEDD, incorporating digitisation and distribution. We’re witnessing a fundamental digital transformation in automotive, which supports the ongoing growth and changes reshaping the industry. 
 
But, what exactly is the future of automotive retail, and how can retailers adapt to stay ahead?

Key automotive retail trends

Trend #1: The impact of technology & rise of the electric vehicle

Technological innovation and the automotive industry have always been a match made in heaven. Electric mobility is set to continue growing. In the UK, for instance, there are expected to be 300,000 public chargers available by 2030¹ and the ZEV mandate dictates that 33% of new cars sold in 2026 should be pure electric.

These efforts have come alongside the launch of more affordable EVs, giving consumers access to options they couldn’t previously afford. At the same time, the growth of EVs is creating opportunities and infrastructure that support the gradual development of autonomous vehicle technology.  

Strategies to help

Understanding technological advancements and how consumers feel about them, is the only way for retailers to engage with evolving trends. For example, retailers need to develop expertise in EV technology quickly and become highly skilled in explaining the benefits and considerations of purchasing or servicing an EV. Consumers now demand more from their automotive buying journeys, seeking greater convenience and integrated, customised experiences. The ECG scheme, offering discounts of up to £3,750 on eligible EVs, adds a crucial financial incentive that retailers should incorporate into their positioning to make EVs more accessible.

Technological advancements have merged with a growing online landscape to create an age of big data where such information is there for the taking. By simplifying data analytics in line with KPIs and wider business focuses, retailer management tools that take technology-driven insights into account are poised to provide a unique perspective on the automotive industry’s future. This approach also makes it possible to recognise both strong and weak areas of technological implementation, allowing for targeted improvements.

Retailers and manufacturers must rise to the challenge, leveraging these insights, factoring in ECG driven affordability and crafting journeys that are as seamless and personalised as they are innovative. The retailers and OEM’s who thrive will be those who treat data as a strategic asset, use technology to simplify complexity, and stay agile in the face of fast changing incentives and consumer expectations.

Trend #2: Omnichannel experiences surpassing online approach

Predictions have been made about the ‘death of the in-person dealership’ since the internet’s launch in the early 1990s, and with more and more vehicle sales taking place online, that prediction seemed to be closer than ever to coming true. However, the appetite for online first has declined in favour of an omnichannel approach. Customers are now expecting both an excellent and convenient digital experience including virtual showrooms, followed by a positive forecourt experience provided by the dealer. Although customers are coming to retailers having visited online car sales platforms, they still want the reassurance of a test drive, vehicle inspection and knowledge of a salesperson, especially if looking to move to an EV. The online element is so important to set a good first impression, as well as the fact:

“Millenials and Generation Z are more inclined to remotely interact with sales personnel and ultimately buy online. Such generations will represent the majority of buyers by 2025.”²

Strategies to help

Studies have proven that 70% of buyers continue to see physical dealerships as a major sales touchpoint.³ This means that, despite the strength and popularity of online retail, an omnichannel approach, rather than going completely digital, is likely to be most effective going forward. Retailers facing this moment of change, therefore, need to consider how best to merge online and in-person capabilities to complement each other rather than cause unwanted complexity. This must be supported by a high level of customer service for success.

OEM-dealer performance management platforms that merge data sources to produce valuable insights and transferable goals in KPI dashboards are the best way to support a shift in strategy, providing simplified reporting capabilities and ensuring teams are better able to continue operating as a cohesive whole. By utilising data and technology, customer pain points in the car buying journey can be constantly monitored and alleviated.
 
In this changing landscape, the combination of online and offline strategies allows businesses to reach customers wherever they are, catering to diverse preferences and needs. As a result, manufacturers and retailers alike can strengthen their market presence and drive sustainable growth by utilising both digital and physical touchpoints. Consider offering a truly personalised service by responding to customers through their preferred communication channel, whether that’s telephone, email, text or WhatsApp.

Trend #3: Increased visibility of network performance

As vehicles become increasingly sophisticated, OEMs are generating and collecting far higher volumes of data. Pressure builds on those brands trying to access multiple systems to manage network performance effectively. Getting a single source of truth and clearer visibility is a response to this challenge. OEMs need real-time insights into which dealerships are excelling, where operational gaps exist and how customer experiences differ across the network. This trend has been driven by several factors:

1. The need for quicker data-driven decision making and action taking.
2. Pressure from competition.
3. Inconsistencies in customer experience.
4. Consolidation of dealer networks so OEMs know where to focus support.

Strategies to help

Improving visibility of network performance gives OEMs the insights they need to act fast and drive results. Action-oriented performance management tools turn raw data into clear, actionable intelligence. Key strategies include:

• Consolidated, trackable KPIs – All network metrics in one accessible view.
• Visible action planning – Clear goals and corrective actions across the network.
• Network-wide performance scorecards – Compare dealers consistently to spot top performers and areas for improvement.
• Automatic score calculations – Real-time tracking without manual effort.
• Advanced reporting tools – Visualise trends, uncover operational gaps and make informed strategic decisions.

By creating a single source of truth for dealer performance, OEMs can identify strengths, address weaknesses and focus support where it matters most. Better visibility means optimised operations, consistent customer experiences and stronger profitability across the network.

Trend #4: Evolving automotive retail industry strategies

In recent years OEMs have been toying with the agency model, and indeed some have taken that approach. However, a third of top OEMs have ruled it out for now⁴ and a more hybrid approach is being considered by many. What’s becoming apparent is that the hybrid model differs from one OEM to another and there is no one size fits all solution. 

Strategies to help

It’s clear that OEMs need to adapt their distribution methods to remain competitive, so acknowledging that there’s a need to review is a good first step. Key actions include:  

• Staying up to date with industry developments 
• Leveraging artificial intelligence (AI), machine-learning (ML) and cloud services to improve processes
• Enhance customer experience, from making service appointments, handling warranty issues, expanding services and product offering to giving individuals a bespoke buying experience
• Ensure your online presence is sophisticated, seamless, and customer-centric, including e-commerce, configurators and integrated financing or mobility services.
• Developing partnerships with new brands while strengthening existing ones  

Industry opinion: In your role as Direct Sales Operations Department Manager at Honda, what has helped you effectively roll-out strategic changes?

“Having a performance management platform in place has been essential to Honda as we transitioned our sales approach. It allowed us to communicate expectations clearly and efficiently across the retailer network, the area team and internally. Without the right tools, implementation quickly becomes slow and ineffective, which can be detrimental for any business dealing with complex and regularly evolving strategies.”

Jordan Watson, Direct Sales Operations Department Manager, Honda UK

Trend #5: New revenue streams

Digitisation and shared mobility continue to reshape the automotive retail industry. Consumers increasingly value flexibility and convenience, pushing dealerships to explore new ways to generate revenue beyond traditional sales. Subscription-style models such as Car-as-a-Service (CaaS) and short-term EV leases are becoming mainstream, giving customers access to vehicles on a month-to-month basis without long-term commitments.

Innovative retail formats are also emerging. From BYD’s experience centres to hybrid online-physical sales models, dealerships are blending digital convenience with in-person touchpoints to boost reach and efficiency. Meanwhile, the increased number of OEMs across Europe presents fresh partnership opportunities for retailers looking to increase brand awareness and capture new audiences.

Strategies to help

To succeed in these new streams, dealers must base decisions on reliable data. Performance management tools can highlight trends, track customer behaviours and pinpoint opportunities, helping retailers distinguish lasting revenue drivers from short-lived fads.

AI-driven performance insights can help to identify gaps and opportunities, for example, if upsell conversion is 20% below average, targeted technician training on upsell videos or process adjustments can turn that around quickly.

Industry opinion: What advice would you give auto OEMs to future-proof and stay ahead of the competition?

“A 38% increase in automotive brands in the UK market over five years has intensified competition, so alongside reviewing new car sales strategies, brands must prioritise the opportunities a strong aftersales experience brings. The support a customer receives after purchase ultimately shapes their perception of the brand and provides the differentiation that drives retention and recommendation. A seamless and proactive aftersales experience builds trust, long-term loyalty and the profitability that keeps dealerships resilient in a rapidly changing industry. Done well, a class-leading ownership experience can build a reputation that can significantly influence the initial purchase decision.”


Laura Williams, Automotive Consultant (previously worked for Suzuki, Hyundai and the Volkswagen Group)

Trend #6: Environmental regulations

For automotive retailers especially, a failure to adhere to or foresee environmental regulations leaves the doors open for reputational damage that impacts sales and creates higher price points, as well as hefty fines for not meeting Net Zero targets. Success in the face of these challenges relies not only on the facilitation of affordable EVs, but also on the furthering of industry-defining environmental initiatives including:

• Car shares
• Recycling campaigns 
• Reassessment of end-of-life disposal
• Sustainable research and development

Strategies to help

Sustainability strategies should be implemented at every stage of the sales cycle to address environmental concerns, and performance management platforms that make it easier to respond to changes in demand and regulation can make that happen. Performance management tools that allow for impact measurement and sustainability reporting are especially fundamental for driving change off the back of incoming insights. By focusing on non-financial KPIs within these dashboards, retailers can also ensure that they’re able to assess activities and relationships, considering how they fit within existing environmental objectives, and also how they can adapt to an ever-changing environmental landscape.

Remain competitive with data-driven insights

Competing in automotive retail is dependent on a dealership’s ability to identify areas for success and improvement. Readily available data is the key to unlocking this advancement and is very much there for the taking as automotive technology, and wider switches to an omnichannel approach, see the industry joining the big data drive. OEM-dealer performance management solutions that turn that data into actionable outcomes, and enable the improvement of relevant KPIs as a result, are a key factor in both meeting the market where it is, and adapting to the challenges that will continue evolving as the industry moves ever-closer to autonomous vehicles and adaptive revenue streams. 

Our retail performance management software is helping automotive retailers to lead the future of automotive retail, through a range of action-oriented focuses that make it possible to assess strengths, weaknesses, and potential areas for improvement in an ever-shifting sales landscape. Centralised insights, collaborative action-planning, and KPI dashboards stand to bring the future of automotive retail directly to your dealership’s door, both now and as we move into a future that remains uncertain.

Editor's note: This article was originally written in 2021 but has been reviewed and updated in 2024 & 2025.

Footnotes:

1. Tenfold expansion in chargepoints by 2030 as government drives EV revolution - GOV.UK 
2. Future of Automotive Retail
3. https://www.autotraderinsight-blog.co.uk/auto-trader-insight-blog/the-key-takeaways-from-the-road-ahead-for-automotive-retail-conference 
4. https://www.autotraderinsight-blog.co.uk/auto-trader-insight-blog/the-key-takeaways-from-the-road-ahead-for-automotive-retail-conference