How Automotive Companies in Saudi Arabia are Adopting Digital Transformation

How Automotive Companies in Saudi Arabia are Adopting Digital Transformation

The automotive industry is embracing new technologies, including autonomous vehicles, electrification, vehicle connectivity, shared mobility, big data & analytics, artificial intelligence, 3D printing, human-machine interfaces, process mining, deep learning algorithms, robotic process automation, and many others to help customers with their exciting and innovative products.

Integration of digital technologies has become necessary for automotive manufacturers as these technologies help run operations smoothly. Whether it is a matter of product design, development, supply chain and management, or sales and marketing, automotive sectors can consider digital transformation for every part of their activities. Moreover, tier suppliers and OEMs leverage digital transformation to evaluate their processes and where changes are required in new products.

One of the main reasons for using digital technology in the automotive business is to enhance customer support online. For example, automobile dealerships that are associated with eCommerce can fulfill the needs of their customers and deliver products to customers online. Whether it is car accessories, components, or spare parts, digital technologies can be utilized to increase customer satisfaction and eliminate human errors. 


High Demand for Online Purchases in the Kingdom

The automotive industry in KSA is currently controlled by distributing and domestic retail partners. These partners introduce advancements for OEMs and other brands, especially when there is a shortage of domestic producers to bring quality goods. Due to this, the import of automotive vehicles and spare parts has become essential from other countries like Japan, the USA, Korea, India, China, and other gulf countries.

However, people from rural areas and tier 3 cities will still be dependent on the local and unorganized market because the ecosystem contains large trading enterprises that have connections with distribution and retail networks and have the mission to compete all over the KSA for tier 1 and tier 2 cities.

Moreover, a maximum number of automakers are moving digital and having online platforms for taking orders of vehicles, selling, purchasing, and home deliveries. In Saudi Arabia, we can expect a huge difference in car buying. Many people will buy a car online, and there will be more car dealers who promise to transform their experience centers.

Digital transformation is common for automotive technologies. For example, Toyota launched the Toyota Saudi Select app in 2018 with an aim to interact with customers and help them know about all Toyota car models. For this, an augmented reality interface is used, and it enables users to interact with the car’s interiors and exteriors. Not only this but also this automotive company can connect with users before scheduling any showroom visit.

Toyota Saudi Select app


To obtain data security, in-vehicle payments will be made through cloud apps, and these apps can help customers connect with the car. However, a third-party app provides benefits to drivers. For instance, drivers can use smart wallets based on blockchain to earn cryptocurrency and further for in-car purchases.

Apart from that, automakers have needed to collaborate with software developers and technology providers for risk management and to gain more facilities for car purchases. One of the main benefits of choosing the best software development companies or technology service providers is to embrace digital transformation. Also, the experts can help you acquire competitive infrastructure and compatible products that you can manufacture with cars.

In addition, automakers are approaching customers to pay a membership fee or subscription to access particular car-related services, and everything will be displayed on the driver’s screen. Similarly, Most car dealerships now give options to place a deposit in order to achieve security services for the car. Even customers can get home delivery to purchase the car completely online.

On the other hand, Infiniti in the Middle East has also introduced the showroom of the future that may be known as the Infiniti configurator, and this is available in different markets, including the UAE, Saudi Arabia, Oman, Kuwait, and Lebanon. Car buyers will get the virtual experience with customization content and high-quality and realistic visualization. Furthermore, consumers can know about Infiniti models via the interactive configuration panel and, after that, ask the company for a quote, customized test drive, or configuration.

In the age of digital, cars can be designed with new operating systems and involve various functions such as automatic high beams, automatic and emergency car braking, Alexa assistants and AI bots, wireless smartphone connectivity, and more.

Infiniti configurator


How do Automotive Industries Drive Operational Efficiencies?

Technologies like transportation management system, warehouse management system, RFID, ERP based integration are highly adopted by car workshops, car dealers, retailers, spare parts owners, and rental companies in Saudi Arabia and in order to have a competitive edge against other business leaders or automotive players in the country. Some of the key players involved in automotive are Mohammad Yusuf Naghi (Hyundai and BMW), Abdul Latif Jameel (Toyota), Haji Hussien (Mazda), and a few more. 


Top Reasons Why Automotive Industries Need a Digital Transformation


Changing Customer’s Expectations

Speed, innovation, and convenience are three important things required by new-age customers. Yet, the automotive industry is facing huge pressure due to the customer’s demands and changing requirements that are to have value-added vehicles, quick service, loyalty, and cutting-edge technologies. 


Target Global Markets

Thanks to digital technology, it allows you to reach customers worldwide, but there are some traffic issues you can face if you are new in the automotive sector and are not taking any digital marketing services. For example, when selecting search engine marketing with SEM, you can get advantages of geolocation and make both services as your marketing strategy and target individuals anywhere in the world because SEO can help you connect with different customers using search history, country, region, language, and more. 


Chances to Earn High Profits

Digitalization is playing a crucial role in the automobile business. Today, auto sales are highly influenced by digital factors. That’s why it becomes necessary for auto sectors to think about a digital transformation, and it is also required to be agile, especially if the auto industry specialists want to stay ahead of the competitors. Likewise, the digitalization of the automotive enterprises will concentrate on autonomous driving, the connected traveller, digital marketing, and digitizing of the ecosystem.

Digitalization of the automotive and autonomous-driving


Nonetheless, one of the biggest challenges that the automobile industry can experience is digitally maintaining positive relationships with customers. But how can you avoid this challenge? It’s simple. Get digital transformation services at Alareeb ICT and meet your unique automotive business needs.

When you book a consultation with one of the experts from Alareeb IT for a digital transformation, we help you combine your business processes with a client-centric approach and assist you in aligning our IT strategy with business goals.

As a Saudi Arabian Company, we have also empowered government units and various organizations with our digital transformation services and helped them satisfy their business needs and customer expectations.


Now it’s your turn to put trust in Alareeb ICT and download our latest eBook based on digital transformation, prepared by the experts at Alareeb ICT.

Download Alareeb ICT Digital eBook


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