Importance and Benefits of Digitalization For Auto Dealerships in India

With more and more discussions happening on the future of mobility, automakers and dealerships are rethinking their traditional approach to serve the car buyers through tech customizations and connectedness

Digital Transformation in auto industry The automotive industry has changed its approach and is now adopting digitalization. No doubt, there are still many gaps to be filled but the inclination towards digitalization is a hint that in the coming days the stake holders in the automobile industry will be duly served with digital solutions.

Already, on the B2C front the consumers have shifted to an online approach but the B2B side of the automobile industry still has to attain certain good levels of digitalization. Many veteran automotive OEMs are still following the same traditional method where they sell the majority of the vehicles to franchise dealerships. And then, the dealers are also limited to sell the vehicles through their dedicated outlets only. In fact, there’s much of a need for the dealers to further upscale themselves on the digital front.

Both, dealers and OEMs need to transform their processes to improve the workforce’s productivity and be able to offer better services to customers. More than the OEMs, the dealers need to upscale on the digital level and present themselves on a platform like

Let us now understand in detail why digital transformation is crucial for car dealers and benefits they can get incorporating digitalized tools and listing themselves on a platform like Car Jasoos.

Why is digital transformation in automotive dealerships required?

In the past, car dealers in India managed their inventory and supply chain using manual deal management processes. And now, when we are moving towards the 5G era, the processes need to be laser quick and highly improved. The shift towards digitalization can help the dealers to reduce their operating costs, improve customer retention rates and amplify customer satisfaction levels. Some OEMs who have adopted this method have witnessed an increase in sales as more people have enjoyed better value for money due their digitalized processes.

The benefits of embracing digitalization in the auto dealership are mentioned below: 

Increase in customer retention

With the introduction of automated systems that include LCD touch screens, bar codes, and RFID in customer data, auto dealerships in India can quickly improve their business efficiency by enhancing their customer relationship and retention levels.

Cost reduction

Another advantage that digitalization has to offer is the reduction in cost for the dealers. At various levels, the dealers can curtail their budgets, enjoy higher return on investments and even reduce operating costs, thus leading to overall cost reduction.

High profitability

It is also expected that the dealers will benefit from digitalization by providing top-notch customer experience and incorporating enhanced business processes, enabling them to focus on customer satisfaction and customer care. It will lead to increased productivity, enhanced profit margins, and ultimately, enhanced bottom-line margins.

Technological advancements

The other advantage of digitization in the automobile industry is that it facilitates deploying the latest technologies. These technologies deliver cost savings, extended product life, environmental friendliness, and superior performance. Dealers that adopt new technologies can reduce their overheads, which in turn help them increase revenues.

Dealers that use modern technologies can maintain profitability, which further ensures that the market competition remains manageable.


The automotive business is going through some exciting times and dealerships should not make the mistake of restricting their digital transformation into remote business areas like distribution, manufacturing, or customer-facing pursuits. They need to make digital transformation a fundamental, inseparable means of working in the automobile industry.

Pan-India car dealers can onboard themselves on to amplify their sales and receive inquiries from car buyers who are at the final stage of buying a car.

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