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Marcus Insights
Adapting Motor Vehicle Dealerships for Electric and Autonomous Vehicles


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Role: Executive Director
Industry: Motor Vehicle and Parts Dealers

Situation: The motor vehicle and parts dealership industry is facing a transformative shift with the rise of electric and autonomous vehicles, as well as changing consumer preferences towards sustainable and tech-integrated transportation. As the Executive Director of a large dealership network, my focus is on strategizing the adoption of EV and autonomous vehicle sales, integrating digital platforms for seamless customer experience, and optimizing the aftermarket parts and service offerings. Internally, the organization is grappling with the need for reskilling and upskilling the workforce to adapt to the changing automotive landscape and the challenge of aligning legacy business models with the future of mobility. Additionally, the company is considering diversifying into mobility-as-a-service offerings to cater to evolving consumer preferences.

Question to Marcus:


How can we effectively transition our dealership network to embrace electric and autonomous vehicles, while also ensuring workforce readiness and exploring new revenue streams through mobility services?


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Based on your specific organizational details captured above, Marcus recommends the following areas for evaluation (in roughly decreasing priority). If you need any further clarification or details on the specific frameworks and concepts described below, please contact us: support@flevy.com.

Digital Transformation

Embracing Digital Transformation is essential for your dealership network to adapt to the evolving automotive landscape. Integrating digital platforms into the sales process, from online showrooms to digital financing options, can significantly enhance the customer buying experience.

For electric and autonomous vehicles, digital tools can offer immersive experiences, such as virtual test drives and Augmented Reality features that detail vehicle innovations and sustainability benefits. Additionally, leveraging data analytics can personalize the Customer Journey, tailoring offerings based on preferences and driving patterns. On the operations side, digital systems can streamline Inventory Management, connecting your network more efficiently to suppliers and enabling better forecasting for EV and autonomous vehicle demand. Implementing these technologies not only positions your dealership as a forward-thinking leader in the automotive industry but also aligns your business model with consumer expectations for technology integration and sustainability.

Learn more about Digital Transformation Inventory Management Customer Journey Augmented Reality

Workforce Transformation

As the automotive industry shifts towards electric and autonomous vehicles, reskilling and upskilling your workforce is paramount. This involves training sales staff to effectively communicate the benefits and functionalities of these new vehicle types, ensuring they can address consumer inquiries confidently.

Technicians will require specialized training on the maintenance and repair of electric drivetrains and autonomous systems, which differ significantly from traditional combustion engines. Beyond technical skills, fostering a culture of continuous learning and adaptability is crucial. Encourage your team to embrace new technologies and industry trends as opportunities for personal and professional growth. Workforce transformation should also prioritize digital literacy, enabling employees to utilize emerging digital tools and platforms that streamline operations and enhance Customer Service. Successfully managing this transition can enhance employee satisfaction and retention, and position your dealership as an employer of choice in a competitive market.

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Customer Experience Management

In the context of transitioning to electric and autonomous vehicles, enhancing the Customer Experience Management is crucial. This entails understanding the unique needs and concerns of buyers in this market, such as range anxiety for electric vehicles or safety questions regarding autonomous technology.

Tailoring the customer journey to address these issues directly, through informative content, hands-on experiences, and responsive support, can build trust and confidence. Leveraging technology to create seamless interactions, from initial interest to post-purchase support, strengthens customer relationships. This includes digital communication channels, user-friendly websites, and Mobile Apps for convenient service scheduling and updates. Additionally, consider creating exclusive events or communities for EV and autonomous vehicle owners, fostering a sense of belonging and loyalty to your dealership. Focusing on customer experience not only drives sales but also encourages positive word-of-mouth, crucial for the adoption of these emerging technologies.

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Strategic Partnerships

Exploring Strategic Partnerships with manufacturers of electric and autonomous vehicles, technology firms, and energy providers can offer several advantages. Collaborations with vehicle manufacturers may provide access to training resources for your staff and exclusive insights into upcoming models and technologies.

Partnerships with tech companies can enhance your digital platform capabilities, enabling better Data Analytics for Customer Insights and more immersive virtual experiences. Additionally, alliances with local energy providers or charging station networks can facilitate the creation of bundled offers or loyalty programs, making EV ownership more attractive and convenient for consumers. These partnerships not only expand your service offerings but also position your dealership as a comprehensive mobility solutions provider. This strategic approach can differentiate your network in a crowded market and align your operations with the future of transportation.

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Sustainability Practices

Integrating Sustainability Practices into your business operations and Value Proposition is increasingly important, given the consumer shift towards eco-friendly and sustainable transportation options. This can involve adopting green practices within your dealerships, such as energy-efficient lighting and solar panels, which reduce operational costs and demonstrate a commitment to environmental stewardship.

On the sales side, highlighting the sustainability benefits of electric and autonomous vehicles, including lower emissions and reduced fuel consumption, can resonate with environmentally conscious consumers. Additionally, consider offering trade-in programs that encourage the switch from traditional to electric vehicles, further aligning with sustainability goals. Communicating these efforts through your marketing channels can enhance your brand image and appeal to a broader customer base, driving sales and supporting the transition to a more sustainable automotive future.

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Mobility-as-a-Service (MaaS)

Diversifying into Mobility-as-a-Service (MaaS) offerings could open new revenue streams and meet evolving consumer preferences for flexible and convenient transportation solutions. This could range from ride-sharing services featuring your electric or autonomous vehicles to subscription models that allow customers to access a variety of vehicles as needed.

MaaS solutions appeal to urban consumers who may prioritize access over ownership and value sustainability. Developing these services requires a deep understanding of local market demands, strategic partnerships, and robust digital platforms for booking and managing rides. By positioning your dealership network as a provider of comprehensive mobility solutions, you can attract new customer segments, increase utilization rates of electric and autonomous vehicles, and gather valuable data on consumer preferences and usage patterns, informing future business strategies.

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