Market Trends of Switzerland Used Car Industry
Rising Trend of Digitalization to Enhance the Growth of Market
- Rapid digitization across the used car industry is expected to have a profound impact on sales of used cars across the country. The rising integration of advanced digital technologies in the buying process, coupled with growing investments in a variety of consumer-focused digital technologies such as virtual reality, technologies focused on increasing user engagement on the shop floor, etc., is expected to enhance demand in the market during the forecast period.
- Several Startups are introducing digital used car business models, such as Online car retailers, Aggregators, AutoScout24, and many other platforms that allow the user to buy a used car from a comprehensive product portfolio across these platforms. Major aggregators use online platforms to facilitate wholesalers and dealers to list their offerings in one place. For instance, in 2022, AutoScout24, one of the leading online marketplaces in Switzerland received around 25 million visitors. The marketplace advertised more than 7,50,000 vehicles in 2022.
- Further, with the introduction of automated systems that include LCD touch screens, bar codes, and RFID in customer data, auto dealerships are expected to improve their business efficiency by enhancing their customer relationship and retention levels across the country.
- The OEMs and dealers of used cars have started giving the option to test-drive and inspect the vehicle and the ability to obtain multiple clear photos of it, along with detailed, factual data on elements, such as service maintenance and accident history, which, in turn, is likely to witness major growth for the market during the forecast period.
- The introduction of new technology such as Metaverse in automotive enables consumers/buyers to virtually visit their desired cars by the modes of hypothetical iteration. This allows the user to access the complete condition of the car remotely or from a technology store of the after-market or OEM. This is anticipated to witness significant growth for the market during the forecast period.
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Strengthening of online Infrastructure Likely to Have Positive Impact on the Market
- With growing smartphone and Internet penetration across the country, the used car market is getting more organized, and with the growing proliferation of the Internet and smartphones, used car retailers are focusing on using digitalization to make their market offerings attractive, which in turn is likely to witness major growth for the market during the forecast period.
- The trend of online purchasing a used car through apps has improved over the period. App developers have been designing mobile applications with more advanced features that offer more vehicle availability and comparable vehicle costs on a single platform. However, many middle-class people will eventually reach the point where they will need to move from a motorbike to a vehicle, which is likely to enhance the demand for used cars in the coming years.
- Many multi-brand and independent dealerships are anticipated to enhance their web presence to participate in the online used vehicle market. Some dealerships are investing in their websites and Instagram profiles in addition to offering their used vehicle inventory on internet platforms.
- Used vehicle platforms are expected to focus on establishing a transactional marketplace to enable 100 percent online end-to-end transactions without having to visit showrooms from the comfort of their homes.
- Also, COVID-19 has further aided the used car market owing to lockdowns and restricted movement, which made most dealers rely on internet inquiries and bookings to boost sales. Virtual tours and remote inspections are being made available through online portals, and home delivery services are being offered by enterprises, including OEM-certified/authorized dealerships.
- Such developments and active instances concerning used car dealers and operators across the country are anticipated to poise notable demand in the market during the forecast period.
