The automotive industry is at a pivotal crossroads. The rapid acceleration of online car buying, the emergence of direct-to-consumer (DTC) models by original equipment manufacturers (OEMs), and the transformation of dealerships from traditional sales centers to experience-driven hubs are fundamentally reshaping the retail landscape. As digital commerce becomes a central pillar of automotive strategy, OEMs and dealers must collaborate to deliver seamless, personalized, and efficient customer journeys that meet the expectations of today’s car buyers.
The shift toward digital retail in automotive has been building for years, but recent events have dramatically accelerated the pace of change. The COVID-19 pandemic served as a catalyst, pushing both consumers and industry players to embrace online sales channels. In 2020, leading dealership groups reported a surge in online-only sales, with many executives declaring that the industry had reached an inflection point from which there would be no turning back. While online sales still represent a small fraction of total vehicle transactions, the trajectory is clear: consumers increasingly expect to complete more of the car buying process online, from research and configuration to financing and even delivery.
Despite this momentum, operational challenges remain. Many customers report frustration with redundant processes—such as being asked to re-enter information at the dealership that they had already provided online. These inefficiencies not only erode satisfaction but also risk losing sales to more digitally mature competitors. The imperative for OEMs and dealers is to create a truly seamless online-to-offline (O2O) experience, where customer data and preferences flow effortlessly across every touchpoint.
Inspired by digital-native disruptors, OEMs are increasingly exploring DTC models that allow them to engage customers directly, control the brand experience, and capture valuable data. Tesla’s success with a direct sales approach and Carvana’s customer-centric digital marketplace have demonstrated the potential of bypassing traditional retail channels. Established automakers are responding: platforms like GM’s “Shop Click Drive” and similar initiatives from Ford and Fiat Chrysler now enable customers to order vehicles online, complete paperwork digitally, and choose between home delivery or dealership pickup.
However, the DTC revolution in automotive is not about eliminating dealerships. Instead, it’s about redefining their role. As OEMs take greater ownership of the digital journey, dealerships are evolving into local experience centers—places where customers can test drive vehicles, receive personalized consultations, and access aftersales support. The most successful models will be those that integrate the strengths of both OEMs and dealers, leveraging digital tools to create a unified, customer-centric ecosystem.
Far from being rendered obsolete, dealerships are poised to become more important than ever—as experience hubs that bridge the digital and physical worlds. Research shows that while consumers are increasingly comfortable with online research and transactions, the majority still value in-person interactions for key moments such as test drives, vehicle delivery, and post-sale service. The dealership of the future will focus less on transactional sales and more on delivering high-value, personalized experiences that build trust and loyalty.
To succeed in this new paradigm, dealerships must embrace digital transformation. This means investing in tools and platforms that enable seamless data sharing with OEMs, providing staff with the knowledge and resources to act as trusted advisors, and reimagining the showroom as a space for education, community engagement, and brand immersion. Dealerships that can deliver timely, relevant, and personalized experiences—both online and offline—will be best positioned to thrive.
The transition to a digitally integrated automotive retail model is not without its hurdles. Key operational challenges include:
Addressing these challenges requires a commitment to open data platforms, shared incentives, and a unified approach to customer experience. By leveraging modern digital experience platforms and advanced analytics, OEMs and dealers can gain a 360-degree view of the customer, enabling more relevant offers, streamlined processes, and higher satisfaction.
Digital marketplaces are playing an increasingly influential role in automotive ecommerce. Platforms like Carvana and emerging OEM-led marketplaces offer consumers transparency, convenience, and a wide selection of vehicles and services. These marketplaces set new standards for what customers expect: fast, comprehensive online shopping, immediate access to information, and personalized deals based on real-time inventory and preferences.
For OEMs and dealers, participating in or building their own digital marketplaces presents both an opportunity and a challenge. Success depends on the ability to ensure data continuity—so that customer preferences, purchase history, and service needs are recognized and acted upon at every stage, whether online or in the dealership. This continuity not only enhances the customer experience but also unlocks new revenue streams in aftersales, accessories, and mobility services.
The future of automotive ecommerce will be defined by collaboration. OEMs and dealers must move beyond transactional relationships and embrace a partnership model focused on shared goals: customer satisfaction, loyalty, and lifetime value. This means:
The automotive industry stands on the threshold of a new era in digital commerce. The winners will be those who can deliver seamless, personalized, and satisfying journeys that blend the best of online convenience with the irreplaceable value of human connection. By embracing DTC models, transforming dealerships into experience hubs, and ensuring data continuity across every touchpoint, OEMs and dealers can create a future where every customer feels like a valued partner—before, during, and long after the sale.
Publicis Sapient is committed to helping automotive brands navigate this transformation, leveraging deep expertise in digital commerce, customer experience, and data integration to unlock new value and drive sustainable growth in the evolving mobility landscape.