Imagine it’s the year 2030 and you want to buy a car. What do you imagine car shopping in SA would be like?
This question popped up during a discussion with Cuen, Uncle Frank and Andries about the future of brick-and-mortar car dealerships.
Looking at our surroundings in Bushkoppies in Eldorado Park, Johannesburg, we all agreed that there was a real possibility car dealerships were headed for extinction. Unless, of course, they somehow adapt to the growing car shopping appeal of the digital world.
A 2020 video by McKinsey offered insights into how car dealerships might evolve, highlighting customer preferences.
“We gave them different options,” said Thomas Furcher, a principal at McKinsey. “Should it be like Amazon? Should it be like Cartier? Should it be like Apple? The simple answer is there is no one model that fits all customers. What the customer really wants is a car-purchasing process that is personalised and fun.”
The Covid-19 pandemic accelerated changes in the automotive industry, pushing dealerships to offer more flexible buying options, such as online purchasing and virtual showrooms.
This shift reflects broader global trends. Carvana, a US online car sales company, has revolutionised the experience by allowing customers to buy cars online and have them delivered within 24 hours.
However, while online-only dealers have seen growth there have been challenges. For instance, Cazoo, a UK-based online car dealer once valued at $8bn, collapsed into administration in 2023. This begs the question: what can SA brick-and-mortar car dealerships do to adapt e-commerce to survive beyond 2030?
Motus, a SA automotive group, is one company taking strides to embrace the future. It is 68.05% owned by Ukhamba Holdings and is an importer and distributor of Hyundai, Renault, Kia and Mitsubishi vehicles and parts.
Valued at R22bn and listed on the JSE, Motus is focused on making its car dealerships e-commerce adaptable, tech-savvy and customer-centric. Since 2019, the “Motus Xponential” (MX) platform has been the framework for fostering innovation within the company.
According to the Motus 2024 annual report, 52 concepts have gone through their Innovation Accelerator, with seven already commercialised.
One of the most promising innovations is the Digital Dealer platform, which introduces omnichannel sales capabilities. This tech allows for a seamless finance application process that integrates with systems across the vehicle purchasing journey. Not only does it reduce paperwork and processing times, but it also lowers compliance and credit risks. Motus says it is committed to enhancing this platform, which shows how it is gearing up for a more digital, customer-centric future.
Motus has also launched LiquidAssist, an app providing rapid roadside assistance, and Ready2GO, simplifying the car rental application process by eliminating queues and paperwork. Ready2GO positions Motus as an innovator in customer convenience, allowing customers to pick up rental vehicles quickly after a simple registration process.
Another innovation, Klutch, focuses on streamlining parts ordering for underserved markets like SA’s township aftermarket sector. With many South Africans keeping their cars longer, the demand for value-added products is rising. Motus sees this as an opportunity, especially with the country’s ageing fleet of internal combustion engine vehicles.
Kerry Cassel, CEO of Motus Mobility Solutions, notes that innovation and digitalisation will allow the company to tailor its offerings to the needs of these long-term vehicle owners.
A standout example of how Motus is leveraging tech is the MuuV platform. This AI-driven solution matches customers with vehicles that meet their specific preferences, using a blend of customer data and advanced algorithms. The platform helps customers shortlist the best options from a vast selection of vehicles quickly, enhancing the customer experience.
Motus is also exploring trade-in services through an app that provides customers with a guaranteed price for their vehicles, eliminating the need for in-person evaluations.
Across all of these innovations, Motus is embracing the omnichannel experience.
The company recognises that customers expect flexibility and convenience, whether they’re purchasing in person or online. To support this, Motus has invested heavily in upgrading its networks and developing a robust cybersecurity strategy to protect its digital infrastructure.
By investing in digital tools and customer-centric innovations, the company is positioning itself as a leader in the future of SA car dealerships.
Motus’s efforts indicate that the future of car dealerships in SA is not about replacing physical showrooms with digital platforms but integrating both to create a seamless, tech-enabled, customer-first experience.
As more consumers demand flexibility and convenience, dealerships such as Motus are proving that they cannot only survive in a digital world but thrive in it.
With Motus leading the way, we can expect a future where buying a car is fast, simple and deeply personalised. As the automotive industry continues to evolve, the dealerships that adapt and innovate will shape the future of car buying.
By 2030, car dealerships in SA are likely to look very different from today.
• Lourie is founder and editor of TechFinancials.
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