The Future of the Automotive Industry: What’s Keeping Us from Buying Our Dream Car in Just a Few Clicks?
Configuring a car online has long been nothing new (in Europe, over half of new cars have been sold this way since 2016). Certain car manufacturers have already offered online sales of their models for some time, including Tesla, which fully transitioned to this model back in 2019. This seems to be a trend that’s only just beginning.
According to data from the Swiss investment bank UBS, online car sales accounted for only 2% of total sales last year. However, that number is expected to exceed a staggering 50% in just seven years. By 2030, tens of millions of people worldwide will be buying new cars without ever visiting a dealership.
Factors Changing the Traditional Sales Paradigm
Three key factors have contributed to this development. Firstly, the pandemic rapidly accelerated digitalization globally.
In addition to new consumer habits, this trend is supported by the growing demand for electric vehicles. Since these models often differ only in battery size, it’s much easier for manufacturers to offer online purchasing, which also impacts production costs. UBS predicts that this trend will lead to $50 billion in savings in the distribution ecosystem by 2030, benefiting both manufacturers and sellers equally.
Then, there’s the proposed European legislation that mandates a ban on internal combustion engine vehicles by 2035. To achieve climate neutrality by 2050, the EU is taking decisive steps to reduce greenhouse gas emissions. In other words, only electric cars and vans will be allowed for sale in the European market starting in 2035.
Domestic Solutions for Future Business Processes
While online sales of used vehicles have already gained significant traction (in Croatia, for example, the first used car was sold online back in April 2017, while the U.S.-based Carvana sold more than 425,000 used cars this way last year, and Germany’s Auto1 expanded to over 30 markets, selling nearly 600,000 used cars with profits exceeding €5 billion), it was only this year that news of a traditional car dealership experimenting with online sales (albeit partially) made headlines.
The dealership in question is Mercedes, which implemented one of the best solutions of this kind, developed by Namirial. Our multi-platform solution for digital signing is based on Namirial’s SIGNificant technology, compliant with EU legal standards and ISO directives.
Using TIS eSIG, e-signatures can be enabled through digital certificates, as well as manual or HTML5 signatures with a single click. The app allows users to define the signing process to accommodate multiple signatories signing the same document. It also enables remote signing. All of this lays the foundation for a virtual ecosystem that will allow the complete online purchase of new cars.
Given that many potential car buyers are understandably hesitant about online purchases due to security concerns—understandable given the sums involved—TIS eSIG offers a significant advantage in ensuring secure transactions. Documents processed through the platform are protected from unauthorized manipulation, with all signing data stored in encrypted form within the PDF document. If the authenticity of a manual signature needs to be verified, this data is only accessible via the private key of the biometric certificate. Additionally, the eSIG platform includes an application for forensic analysis of manual signatures.
Digital Transition Is Inevitable
Mercedes isn’t the only one recognizing the need to adapt to this new digital reality. Most major manufacturers have been quietly working on digital transitions for years. VW, for instance, has been developing a new sales system based on a unique customer ID since 2019. This ID allows navigation through the entire consumer process—from car configuration to handing over the keys—while ensuring that selected distributors retain a central role, as sales processes will continue to operate on a customer-seller relationship.
Toyota has been preparing the European market for the transition to online car sales for years. Pilot projects enabling fully online purchases are being developed in the UK and Norway. These processes, as noted by Toyota’s Head of Sales and Marketing Matthew Harrison, led to a relatively expected conclusion: to succeed, this service must offer a comprehensive financial package. “We found that a significant number of customers expect a complete leasing package: credit, insurance, and the car itself. I’d compare it to signing a mobile phone contract,” Harrison said. Similar experiences are shared by executives from Volvo, Peugeot, Hyundai, BMW, and Mitsubishi.
The question is no longer whether we can buy our dream car online but when it will be possible. That’s why it’s crucial to prepare for a trend that’s about to explode.
The eSIG platform integrates seamlessly with existing business support and document archiving systems. It keeps up with e-signature trends and is continually upgraded with new technologies—like biometric and video identification. Keeping pace with market demands, TIS eSIG also offers video identification services, making it faster and easier to reach remote clients. Once positively identified, clients can be offered any product during the same video session and provided with a contract ready for signing.
Welcome the Future with TIS eSIG
If you’re interested in learning more about our service, the integration process, or are otherwise curious about the digital transformation of your business, feel free to contact us. Our experts will gladly answer any questions.
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