Automotive IndustryTrends & Drivers

Proprietary and Confidential — ©2016 Cox Automotive

Panos Gikas – VP Global Operations November 24th , 2016

Change comes fast

TODAY‘s consumers and trends…

Millennials will supplant

the Boomers as market

driving force as:

Vehicle Shopping still new

experience

They require more assistance to

get through buying process

They have more potential pain

points

A mobile presence is

vitally important for OEMs

and dealers to attract

millennials: Top 3 Pain points

13% 21%

Gen X

(35-44)

46%

Boomers

(45-64)

Pre-Boomers

(65+)

20%

22%vs

6% Gen X

3% Boomers

First-time buyers

66%

Used their

smartphone at

the dealership

Research and

shop for vehicle

on a smartphone

63% 46%Researching and

shopping time

allocated to a

mobile device

33%vs

37% Gen X

29% Boomers

Filling out

paperwork

29%vs

22% Gen X

25% Boomers

Negotiate

priceFind the best

deal

26%vs

21% Gen X

17% Boomers

0%

Gen Z

(under 18)Millennials

(18-34)

13%

Source: Cox Insights, 2016

Generation Z is…

Cautious with money – due to recent economic conditions.Influenced by practicality in combination

the First Generation to feel

Smartphones are equally as

important as a Computer when car

shopping or researching49% vs. 57%

Millennialswhether Style is a purchasing factor

23% vs. 34%

Millennialswhether Brand is a purchasing factor

Source: Kelley Blue Book, 2016

41% 67%

Agree than owning a

vehicle is no a necessityWould rather have a

cellphone for a year

than a car

61%47%

Think roads will be

safer with autonomous

vehicles

Want there to be

self-driving cars by 2025

‘

’

Much Less Focused on Prestige

Less Homogenious and Diverse. with technology

Customer experience vs Customer Want

Online

Execute Test

Drive

Schedule

Test Drive

Open to

opportunities

Decision to

change

Research about

vehicle

Reference from

other owners

Choose the

model

Deal

negotiationPurchase

Vehicle

handover

Repurchase

Offer Schedule Inspect

EngageInvite

Offline

Average acceptable time per phase

Getting info Wait for test driveProcessing

paperworkProcessing financing

Performing simple

maintance service

Source: Deloitte, 2014

37min

45min

38min

39 min

28 min

PURCHASEPURCHASE AFTER-SALEAFTER-SALE

Today’s customers expect…

...and some consumers are willing to wait only 10-30 minutes per phase

Enhancing the Dealership Experience

TEST-DRIVES

DEAL

STRUCTURING

Source: Car Buyer of the Future, Cox Automotive Maintenance & Repair Study, 2015

45%

70%

only 19%

only 14%

56%

88%

83%

76%

only 8%

the negotiation on

Like to start

their own terms

to the dealer untilLike being anonymous

they lock in a deal

appealing

Find a ‘local service

network’

service close byWant to go to

the dealership where

Prefer to service at

they purchased

a car without a test-drive

Would not purchase

with other makes inWant to have test-drive

a same location

experience over other

Prefer today’s test-drive

alternatives

where the full deal is discussed and

Prefer the current processnegotiated on the lot

VEHICLE SERVICE

35%Select Location on

Quality versus

19% on Price

How well do you stay in touch?

8

Traditional

touchpoint cycle

Social & Connected

touchpoint cycle

Social Media

Sales process

Sales process Campaign / Service visit Campaign / Service visit

Campaign / Service visit

Campaign / Service visit

The next big thing…S

AL

ES

e-mobility Connected Car

Efficiency

& Speed!

3D printingMobility

Aggregators

AF

TE

RS

AL

ES

Experience

Convergence

Car

Cloud

Social

OEM

Dealer

3rd Party

At the end, it’s all simple…

Loyalty and

satisfaction

Convenience

Value over cost

Service Vs. repair

Thank you!