How Car Dealerships Are Revolutionising the Customer Experience

As digital innovation, the shift to electric, and changing consumer habits reshape the automotive industry, car manufacturers are being pushed to rethink traditional dealership models.

Today's car buyers are more informed than ever, researching online before entering a dealership. This shift calls for dealerships to evolve from purely transactional spaces into rich, experiential destinations.

Here are five key trends reshaping the car-buying journey and transforming dealerships worldwide:

1) AI-Driven, Personalised Experiences

Technology is elevating the dealership experience with AI and digital solutions that allow customers to explore, personalise, and access detailed information about vehicles. Online platforms, virtual showrooms, AI chatbots, and Big Data insights are making the buying process more seamless. For instance, Great Wall Motors in Brazil uses AI to enhance in-store efficiency, while General Motors integrates interactive screens and multichannel tools to improve engagement.

“Chevrolet’s ‘Shop, Click & Drive’ platform, for example, digitises most of the purchasing journey. “Buyers can browse real-time inventory and connect with sellers directly, limiting in-person visits to test drives and final purchases,” says Hermann Mahnke, Executive Director of Digital Services and Customer Experience at General Motors.

2) Storytelling and Lifestyle Integration

Dealerships are going beyond product features, telling stories that resonate emotionally and connect with lifestyle aspirations. Brands like NIO have reimagined their spaces as experiential hubs, featuring co-working spaces, libraries, and cafes. Companies are also enhancing their lifestyle appeal through co-branding partnerships. PUMA and BMW Motorsport recently announced the launch of a capsule collection paying homage to the legendary BMW Art Cars. This collaboration brings together automotive excellence, artistic innovation, and fashion.

3) The Power of Sensory Experiences

Brands are investing in sensory design to enrich the customer experience. From architectural materials and lighting to sounds and scents, every detail aims to forge an emotional connection. Rolls-Royce, for example, infuses its workshop interiors with wood and leather scents to evoke the “new car” feel, while Kia partners with world-renowned chef Jean-Georges Vongerichten to create culinary experiences that connect customers to the brand.

4) Flexible and Modular Spaces

With the rise of electric vehicles, dealerships are rethinking their spaces to accommodate both EVs and traditional combustion models. Many are adopting modular designs that allow flexibility for various displays, social areas, and service zones. These adaptable spaces make it easier to modernise facilities and integrate state-of-the-art equipment, creating a smoother and more efficient customer journey.

At the same time, some manufacturers have created separate stores and brands for electric cars, like Spain's Seat with the Cupra brand; popular brands like Chevrolet, Fiat, Hyundai, and Ford display much more expensive EVs alongside traditionally cheaper combustion models.

5) ESG as a Core Value

There’s mounting pressure on dealerships to adopt sustainable practices, enhancing their reputation and aligning with consumer values. This includes energy efficiency, carbon offsetting, community engagement, and transparent governance. Renault, for instance, has launched the "Renault ESG Award" to recognise environmental, social, and governance efforts within its dealerships.

As car buyers’ options evolve, dealership design and customer experience are growing ever more important for brand loyalty and long-term relevance. I believe that by embracing these trends, automotive brands can stay competitive and create meaningful, lasting connections with their customers.