SUMMARY
Built on Web3 technologies like VR, AR, NFTs and blockchain, the metaverse is influencing a new frontier in the automobile sector
Metaverse can bridge the gap between customers and dealerships by allowing customers to touch, tour and test drive cars in the metaverse itself
With several players entering the metaverse to build virtual factories, launch NFTs, and open digital showrooms, the metaverse will eventually become mainstream
The future of the conventional automobile industry hangs in suspense. The outbreak of the pandemic, evolving customer expectations and rapid technological transformation are propelling a wave of disruptive innovation.
As incumbents reel from the massive disruption caused by Virtual Reality (VR) and Augmented Reality (AR), another disruption is lurking in the shadows, one that is ready to revolutionise the automobile industry. Built on Web3 technologies like VR, AR, NFTs and blockchain, the metaverse is influencing a new frontier in the automobile sector.
As sectors from retail to real estate start exploring the metaverse, the automobile sector is also jumping on the same bandwagon. Automakers and dealers are venturing into the alternate realm of the metaverse to entice and engage the digital consumer, exploit design and manufacturing technologies, and capitalise on the new commercial opportunity.
To survive and thrive in this modern world of mobility and metaverse, automobile players must understand the metaverse and what it means for the automobile industry.
En Route To 100% Remote Auto Retail
Metaverse can bridge the gap between customers and dealerships by allowing customers to touch, tour and test drive cars in the metaverse itself. With digital auto showrooms springing up across the metaverse, customers can virtually explore new and used vehicles. Auto retail in the metaverse would be similar to virtual showrooms, where customers can walk around the room and take a closer look at the vehicle they want, even taking it for a spin around the virtual block.
What’s more, metaverse supports online transactions using NFTs (Non-Fungible Tokens) and cryptos, allowing customers to purchase their dream vehicles online. It can help buyers and owners create or mint NFTs of their vehicles to give them a distinct identity. Car owners can also create NFTs of their vehicle license plates to trade with other users later. Metaverse opens the door to 100% remote and frictionless auto retail.
Forging A New Advertising Avenue
With the emergence of a new virtual world comes the prospect of advertising. Contextualised as an immersive place for commerce, the metaverse is already home to retail stores and malls. This represents an opportunity for automakers and dealers to reach metaverse’s growing user base and create an alternate avenue for advertising.
From automobile brands to dealerships, players in the automobile sector are already exploring this new space for advertising. With contextual advertising for automobile brands now available on the metaverse, brands can tap the untapped potential of this virtual market and get a step ahead of their competitors.
Boosting Collaborations Across The Sector
First movers in the metaverse are collaborating with various industry players to efficiently design vehicles, test components, and build virtual showrooms. To accelerate the design process, efficiency, and material procurement, Metaverse allows designers to share vehicle prototypes in real-time with designers all over the world.
Players from all over the world can use AR and VR technologies to collaborate virtually, measure their performance, and fine-tune errors in real time. Additionally, metaverse provides a virtual space to test and verify new vehicles, components and technologies before launching them in the physical world. This allows companies to reduce risks and costly mistakes before investing large sums.
Streamlining Supply Chain Management
Metaverse can be a game-changer when it comes to supply chain optimisation. From vehicle design to procurement of materials to manufacturing, metaverse and its technologies can be leveraged to streamline supply chain management.
Aside from strategic collaborations, the metaverse would allow automakers to create virtual manufacturing units. Such virtual factories can help manufacturers streamline the layout of production lines, speed up procurement of materials and maintain inventory. Metaverse provides a robust simulation environment in which to conduct research, design, procurement, and testing in a safe and cost-effective manner.
Putting Customers At The Centre Of Everything
When it comes to customer journey and experience, the automobile industry lags behind other industries such as retail and hospitality. With all of its efforts and resources devoted to product innovation and operational efficiency, the automobile industry has yet to perfect the art of providing a great customer experience.
Customers today expect highly personalised, result-oriented and responsive service. Metaverse can help automakers in delivering these experiences by creating an immersive and frictionless customer journey. With auto showrooms in this realm, customers can skip dealership visits and browse and buy vehicles from the comfort of their homes.
The Path Ahead
Although at a nascent stage of development, the metaverse has the potential to truly revolutionise the automobile industry. With several players entering the metaverse to build virtual factories, launch NFTs, and open digital showrooms, the metaverse will eventually become mainstream. Players who enter the metaverse today are well-positioned to capitalise on opportunities that arise.
