We’re excited to announce that Perficient has been named a Major Player in the IDC MarketScape: Worldwide IT and Engineering Services for Software-Defined Vehicles 2025 Vendor Assessment. We believe this recognition reflects our deep commitment to helping automotive OEMs and mobility innovators navigate the complex shift toward software-defined vehicles (SDVs) with confidence, agility, and innovation.

What Does This Inclusion Mean for Perficient?

This IDC MarketScape evaluated vendors based on both current capabilities and future strategies. We believe this inclusion is another impressive recognition to celebrate as Perficient leads in strategic vision for the automotive industry and continues to take a pragmatic yet ambitious AI-first approach across the SDV lifecycle. Specifically, Perficient promotes innovation in areas such as digital twins, augmented and virtual reality (AR/VR), smart personalization throughout the buyer and ownership experience, and the monetization of connected vehicle data. Our global delivery capabilities are bolstered by a robust partner ecosystem, and our ongoing commitment to employee excellence and R&D productivity further reinforces our leadership in the automotive technology space.

“It’s an honor to be recognized as a Major Player in the IDC MarketScape report for worldwide IT professional services for software defined vehicles,” said Justin Huckins, director of digital strategy and automotive industry lead, Perficient. “We’re proud of our long-term partnerships with clients that have led to continuous improvements and innovations in the automotive ecosystem. Whether we’re powering subscription-based monetization, unlocking predictive insights, or creating more connected and personalized customer experiences, Perficient is helping drive what’s next in mobility.”

What Does This Mean for Our Clients?

At Perficient, we understand that the shift to SDVs is more than a technology upgrade, it’s a fundamental transformation of how automotive companies design, build, and deliver value. That’s why our consulting model is built around a comprehensive, client-centric, and AI-first approach that supports every stage of the SDV journey.

• Strategic Vision and Alignment: We help OEMs define their vision and align stakeholders around a shared strategy with our Envision Framework & EnvisionOnline platform.
• Accelerating Innovation and Product Development: We apply agile methodologies and implement continuous integration and delivery (CI/CD) practices.
• Building Scalable Technology Foundations: We develop secure, compliant, and cloud-native platforms and subscription-based business models.
• Data Organization and Utilization: We unlock full value of customer data, from vehicle telemetry to customer insights, advanced analytics, digital twins, personalization, and monetization strategies that drive new revenue streams, enhance customer experience, and support sustainability and compliance goals.
• Artificial Intelligence Capabilities: Our teams build virtual assistants that understand natural language, design generative interfaces that adapt in real time to user behavior, and intelligent frameworks that automate complex tasks and decision-making.

Let’s Build the Future Together

As the automotive industry continues its transformation, Perficient remains a trusted partner for automotive companies seeking to lead in the era of software-defined vehicles.

Learn more about how Perficient is shaping the future of automotive.

Read our News Release for more details on this recognition.

We’re proud to share that Perficient has been recognized by a leading global technology research and advisory firm for our deep expertise and impactful work in the automotive and mobility industry. This recognition underscores our commitment to helping automotive companies accelerate innovation, embrace digital transformation, and lead in a rapidly evolving market. 

As the automotive and mobility landscape undergoes a seismic shift—driven by electrification, software-defined vehicles, autonomous systems, and evolving consumer expectations—Perficient stands at the forefront, delivering strategic consulting and cutting-edge technology solutions across the value chain. 

“We’re honored that our clients place their trust in us to help them navigate complex transformations—from electrification and connected vehicles to next-gen retail experiences and mobility services.” said Justin Huckins, Automotive Industry Lead at Perficient.

Driving Innovation Across Key Automotive Domains 

Perficient’s recognition in the automotive and mobility space is a reflection of our long-standing commitment to helping clients not only adapt to change but lead it. Our work begins with a deep understanding of the industry’s unique challenges—whether it’s modernizing decades-old IT infrastructure, navigating the complexities of global supply chains, or reimagining the customer experience. We bring together cross-functional teams of strategists, engineers, designers, and technologists who understand the nuances of automotive and mobility and who are passionate about building what’s next. 

The Ownership Experience of Electric Vehicles 

Take, for example, our work in the electric vehicle (EV) space. As automakers strategize to meet electrification goals and face the challenges of a plateaued level of adoption, we’ve helped clients build the digital backbone needed to address the concerns their customers have voiced. We support EV ecosystems, from connected charging networks and predictive maintenance platforms to customer-facing mobile apps tied to subscription services that enhance the ownership experience. We’ve even developed the Battery Passport, which provides unprecedented transparency into an EV’s battery health and value. These aren’t just technology projects, they’re business transformations that require a holistic view of operations, customer engagement, and long-term scalability. 

Software-Defined Vehicles and Autonomous Capabilities 

In the realm of software-defined vehicles and autonomous systems, we’ve partnered with OEMs and Tier 1 suppliers to take advantage of vehicle telemetry data. We’ve developed cloud-native platforms that enable over-the-air updates, real-time data analytics, and AI-driven decision-making. These capabilities are critical as vehicles become more intelligent and connected, and as the line between automotive and tech continues to blur. This expertise not only lives in the automotive space, but across connected product markets that are continuing to become more integrated from wearables to smart home appliances and security systems. For more information, you can explore our connected products research in which we surveyed manufacturers and end users across market categories to reveal the most pressing concerns and greatest opportunities in the space.   

Automotive Retail and Aftermarket Parts 

We’re also deeply engaged in helping automotive retailers and aftermarket providers evolve. The traditional dealership model is being disrupted by digital retailing, direct-to-consumer sales, and new service expectations. Our teams have delivered solutions that integrate CRM, e-commerce, and service platforms to create seamless, personalized experiences, whether a customer is buying a car online or scheduling a repair through a mobile app. Notably, our generative AI solutions are transforming the way customers interact with a brand’s ecommerce site and drastically improving time spent on site and conversions. 

Take Your Organization from Vision to Value 

What sets Perficient apart is not just our technical expertise, but our ability to connect strategy with execution. We don’t just advise—we build, implement, and optimize. We achieve this with a global delivery model that ensures speed, quality, and cost efficiency. 

As the automotive and mobility industry continues to evolve, we remain committed to helping our clients stay ahead of the curve. This recognition from a leading analyst firm is a testament to the impact we’ve made and the innovation still to come. 

Explore our automotive industry expertise and schedule time to discuss your digital transformation with our experts. 

The Evolving Landscape of Automotive QA 

In today’s automotive industry, QA is no longer an afterthought—it’s the foundation of everything we do. Vehicles have evolved far beyond simple machines into complex ecosystems of hardware, software, connectivity, and automation. With the rise of autonomous driving and electric vehicles, the intricacies of these systems have reached new heights, making quality assurance more critical than ever. 

This complexity has elevated the importance of QA. It’s not just about ensuring a car runs; it’s about preventing failures that could lead to catastrophic consequences on the road. It’s imperative that QA now touches every corner of the automotive industry, from manufacturing precision to validating autonomous driving algorithms and beyond. 

The Shift from Hardware to Software 

One of the big shifts happening in the industry is at the OEMs (Original Equipment Manufacturers). They’re going through a transformation from producing hardware to producing software. This transition amplifies the need for QA. As automotive companies become more like software companies, producing apps, connected products, and subscription services, QA becomes front and center. There’s almost nothing that we’re producing at Perficient, or the OEMs are producing themselves, where QA couldn’t add value. 

QA as a Proactive Force in Automotive Development 

The future of QA in the automotive industry is proactive rather than reactive. QA is evolving into a force that must catch and prevent issues at the design stage, rather than simply finding them later. As the industry embraces agile development and continuous integration, QA needs to be present from the concept phase through every iteration even more. 

This approach requires QA teams to work collaboratively, closely, and frequently with developers, designers, and manufacturers. As autonomous vehicles become more prevalent, QA is transforming into a blend of engineering and data science. Testing autonomous algorithms requires massive amounts of data, simulation, and machine learning, pushing QA teams to adapt and think like data scientists. 

Overcoming Challenges in Automotive QA 

One of the primary challenges many automotive leaders face is keeping pace with the complexity and speed of innovation. As vehicles become smarter and more connected, the number of potential failure points increases exponentially. To address these challenges, we need to embrace technology and rely heavily on automation and AI testing. The complexity of today’s vehicles is such that no human can anticipate all possible situations. We need specialized tools to help us identify and test a myriad of potential circumstances. 

Another significant challenge is the perception that QA is too time-consuming and expensive, especially when there’s pressure to get vehicles to market quickly. However, I always counter this view with a question: Can you afford not to invest in QA? Cutting corners on QA can lead to costly recalls, massive repairs, and damage to your brand, not to mention potential safety risks. 

While some may think that AI is making QA teams less important, the opposite is true. AI is leading the way in making testing faster and easier; QA ensures that AI systems are correctly implemented, safe, compliant, and continuously improving. 

Addressing Future Challenges 

To address future challenges in automotive QA, Perficient implements several key strategies: 

1. Early Involvement: QA teams are involved early in the development cycle, participating in design and conceptualization phases. 
2. Collaboration: There’s increased collaboration between developers, QA teams, and manufacturers to ensure seamless integration of software and hardware. 
3. Innovative Culture: Companies are fostering a culture of innovation, encouraging team members to constantly seek better ways of doing things. 
4. Talent Investment: There’s a growing focus on investing in talent and training teams to handle new and complex challenges. We bring top talent to support your organizational needs and meet your challenges head on. 
5. Cybersecurity Focus: With the increasing connectivity of vehicles, cybersecurity has become a new, critical aspect of QA. 

The Future of Automotive QA 

As the automotive industry continues to evolve, QA will play an increasingly vital role. The complexity of modern vehicles, the shift towards software-driven development, and the advent of autonomous and electric vehicles all underscore the importance of robust QA processes. 

This is one of those times in the automotive industry where we’re seeing tremendous change, with real winners and losers emerging. Success will depend on how well companies integrate towards becoming software companies, how well they’re able to move quickly and navigate this new space and put out world-class products that create great experiences for their consumers. QA is an essential part of that. 

In this new era of automotive development, QA is not just about finding bugs—it’s about ensuring excellence, earning consumer trust, and driving innovation in one of the world’s most dynamic industries. 

Perficient’s team of experienced QA professionals, led by industry veterans, can help you navigate these changes and implement cutting-edge QA strategies tailored to the automotive industry. Contact us today to learn how our automotive QA expertise can drive your success in the software-driven future of the automotive industry.  

Connected vehicles are no longer the future. They have become the present. This year, our team is conducting connected products research in which we are collecting insights from consumers, commercial end users, and manufacturers. The reason? Almost every manufacturer is working on providing connected products and solutions for both their consumers and their businesses operations. With that initiative comes challenges with leveraging huge volumes of data and questions about how companies can create revenue opportunities that still generate significant value for the consumer. 

Our research spans many industries, but I wanted to focus in on how connectivity is uniquely playing out in the automotive industry. This industry is on the brink of a technological revolution, and connected vehicles are at the forefront of this transformation. As the world becomes increasingly interconnected, the cars we drive are no exception. Today, cars are not only becoming sophisticated, but also becoming data centers on wheels. With advanced sensors and constant internet connectivity, connected cars can communicate with other vehicles, infrastructure, and even pedestrians. This interconnectivity promises to enhance safety, efficiency, and convenience. 

Explore Our Connected Vehicles Strategy Position

Will Promises of Value Outweigh Privacy Concerns? 

Proponents argue that connected vehicles will significantly reduce accidents through real-time data sharing and advanced driver assistance systems (ADAS). Imagine a world where traffic lights communicate with cars to optimize traffic flow, or where a vehicle can warn its driver of an impending collision long before it happens. The value of these interactions for drivers and their communities would be life-altering.  

However, this connectivity raises serious privacy concerns. With cars collecting vast amounts of data on our driving habits, locations, and even conversations, consumers are wondering who has access to this information and what is being done with it. For manufacturers, the questions must be asked: are consumers being fully educated on their data and how it is used? Are they getting value from their data being collected? Are consumers going to resist the full adoption of connected vehicles if they do not feel entirely comfortable with this transaction of privacy for value? 

Securing Consumer Data Is the Pathway to Adoption 

The whole question of data privacy is critically important. There are regulatory and compliance issues with data, and the impact goes way beyond the consumer and their vehicles. For OEMs, the goal must be bigger than just monetizing the data. The data must be leveraged for the consumer and provide value to them as well. The consumers need to get value from their data in terms of benefit to them, their fellow consumers, and the larger community.

The promise of connected vehicles is undeniably exciting, offering unprecedented safety, convenience, and efficiency. However, we must tread carefully. As we move towards this connected future, it is crucial that we address these challenges head-on, ensuring that the benefits of connected vehicles do not come at too high a cost for consumers.  

The future of the automotive industry is here, and it is connected. OEMs are busy getting ready for a connected future along with managing vast data opportunities and issues.  

Ready to connect? Reach out to discuss how our expertise in the automotive industry can help your brand forge the future of connected vehicles. 

There is an untapped potential for automotive loyalty programs, and we are living in an era where customer loyalty is more fleeting than ever. Until now, the relationship between OEMs and customers has been largely transactional. A customer buys a car, and the interaction ends there until the next purchase cycle—typically five to ten years later.

But in today’s competitive landscape, this model is no longer sufficient. Customers expect ongoing engagement and value from the brands they choose.

The way forward is to build innovative loyalty programs beyond the usual incentives to create genuine brand advocates. The power of loyalty programs has proven successful in other industries, from airlines to retail. They create a sense of belonging and reward customers for their repeat business. However, the automotive industry has been slow to adopt comprehensive loyalty programs.

This needs to change, and here’s why.

Why Does Loyalty Need to Change?

Three major desires of OEMs and customers are changing the face of automotive loyalty:

1. Increased Customer Retention – It’s significantly cheaper to retain an existing customer than to acquire a new one. Loyalty programs can keep customers engaged between purchases, ensuring they return when it’s time for a new vehicle.
2. Higher Lifetime Value – Loyal customers are likely to spend more over their lifetime, not just on vehicles but on related services such as maintenance, accessories, and upgrades.
3. Enhanced Customer Experience – A well-designed loyalty program can improve the overall customer experience, leading to higher satisfaction and positive word-of-mouth.

Crafting the Ultimate Loyalty Program

To create a successful automotive loyalty program, manufacturers need to think creatively and holistically. Here are key elements to consider:

1. Tiered Rewards Systems – A tiered system encourages customers to strive for higher levels of rewards. For example, a basic tier might offer discounts on services, while higher tiers could include exclusive access to new models, VIP events, or even free maintenance packages.
2. Personalized Experiences – Leverage data to understand customer preferences and tailor rewards accordingly. Personalization can range from targeted service reminders to custom offers based on driving habits and vehicle usage.
3. Integrated Ecosystems – Create an ecosystem where customers can earn and redeem points across various touchpoints—dealerships, service centers, online stores, and partner businesses. This integration makes the program more valuable and versatile.
4. Community Engagement – Build a community around your brand. Organize events, create online forums, and encourage social media engagement. Customers who feel part of a community are more likely to remain loyal.
5. Seamless Digital Experience – Ensure your loyalty program is accessible and easy to use via a mobile app and online portal. Customers should be able to track their points, redeem rewards, and access exclusive content with just a few clicks.

Several automakers are already pioneering in this space. For example, Tesla is known for its referral program, as it rewards customers who refer new buyers with exclusive perks including early access to new models and significant discounts. The BMW Loyalty Program also offers a range of benefits, from special financing rates to personalized gifts and invitations to exclusive events. Further, Hyundai Rewards allows customers to earn points for vehicle purchases, service visits, and even test drives, which can be redeemed for future purchases and services.

The Road Ahead

The future of automotive loyalty programs is bright, but it requires a shift in mindset. OEMs must move beyond the traditional sales cycle and invest in long-term relationships with their customers. By doing so, they can turn one-time buyers into lifelong brand advocates, driving sustained growth and market leadership.

By fostering deeper connections with customers and offering meaningful rewards, OEMs can ensure that their brands remain top-of-mind and top-of-choice. The journey to loyalty starts now. Are you ready to take the wheel?

The Perficient automotive team would love to hear your thoughts and help you to build out a world class loyalty program that gives you a sustainable competitive advantage in the marketplace.

When we conducted our electric vehicle customer journey research last year, we confirmed a commonly held belief in the United States: most people aren’t happy with their dealership experiences, specifically as it relates to aggressive sales tactics. Automotive customers desire experiences and service centers that meet their needs, listen to their concerns, and provide a comfortable environment to explore vehicles at their own pace. OEMs are putting a greater emphasis on the customer experience, whether online or at the dealership, than ever before, but are we thinking about this priority the right way?

No longer are demographics of automotive shoppers dominated by the Baby Boomers and Generation X folks. The largest group of shoppers are now Millennials and Generation Z, both of which had access to computers, handheld devices, and subscriptions services for a significant part of their lives. However, when I think of an iconic experience that has touched a majority of these shoppers and changed their expectations for all other experiences, I think of Apple and the experience at their stores.

The Apple Store Difference

I remember walking in a mall and comparing the Microsoft store to the Apple store. What a huge difference in customer experience. Microsoft was a typical mall store, which had nothing really wrong with it, but it held no candle to Apple’s stores.

The Apple store is an experience where customers would not only transact to get products and services, but also engage with the products and staff. The staff was extremely educated about all the products, and their job was to guide customers to experience the products and learn more about them, focusing less on the aggressive sales tactics that many other stores implemented. As a result, people actually made plans to go to the Apple store to hang out, play with the latest products, take classes, and even have personal meetings with the “Apple Geniuses.”  As my wife is shopping at the mall, I have often found myself spending time at the Genius Bar learning new features on my iPhone, iPad, Apple Watch, or Mac computer.

What If Dealerships Were Like Genius Bars?

So, here’s my question to everyone who thinks dealerships must be only focused on selling vehicles or driving traffic to service centers: Is there not another option? What if automotive dealerships were more like the Genius Bars at the Apple stores, and people looked forward to visiting rather than dreading a whole day of browsing options, negotiating, and paperwork? I think of my mother-in-law, who has bought three brand new vehicles — an Aston Martin, BMW, and recently an Audi — only to immediately return all three because she could not understand the technology in the vehicles.

It’s true that vehicles will only get more complex with time, and there will be many benefits to these new features, but a critical component that we fail to consider is how customers will be able to learn all this technology. Especially since most drivers keep their vehicles for a few years, the technology will have changed so much by the time they begin shopping for a new one.

Customers need accessible and beginner-friendly ways to explore new vehicle technology and feel confident about driving a new car off the lot. There should be resources available on how to use the dashboard, connected products, subscription services, and even software updates. All OEMs should have a mobile app if they do not already, and all OEMs should be working with dealers to make sure that their customers understand how to get the most out of their vehicles using that app. Imagine a future in which folks are booking classes at the dealership, playing with new products, and getting sneak previews of upcoming products and the latest technology.

The Evolution of Loyalty Requires a New CX Approach

The saleswomen at my local Ford dealership spent over an hour with me on my new Edge just to explain how to use the dashboard. Her commitment to creating a great experience has made my wife and I loyal to her dealership, and we buy all our vehicles from that location. Even better, we send our friends and family to this dealership.

I am suggesting that dealerships change their approach to customers by looking beyond service and delivery centers as the only means to lifetime value. They must considering becoming a lot more like Genius Bars, and OEMs should invest in this future for their dealers as well.

Enabling dealers to become showrooms staffed with educators, such as with dashboard screen simulators that teach customers about how to leverage the great technology within vehicles, is the key to long-lasting loyalty and increased revenue. Consumers who understand connected products will spend more money on subscriptions and will be more likely to keep coming back for purchases, from vehicles to aftermarket parts, as well as servicing.

The Genius Bar approach is not an earth-shattering idea, but rather a strategy that aligns the brand with the new technology it sells and the modern consumer it sells to. If done correctly, the increased loyalty will help OEMs and their dealers better understand their customer base, providing more guidance for future product releases.

At Perficient, our automotive experts are ready to help you create a great customer experience, both online and at your dealerships. Whether you need a workshop to develop an approach or a capability assessment for the technology you’ll need, we have the industry knowledge and the technological expertise to build a sustainable competitive advantage for your brand. Together, we can develop your consumer lifetime value and increase loyalty.

Tap into our automotive industry expertise.

It’s best to learn from our past in order to prepare for the future. As part of that practice, let’s review what happened in the last quarter of 2023 for the automotive industry, and make some predictions on what we can expect for 2024.

Gas Prices at the Close of Q4, 2023:

Hawaii               $4.68                               National Average     $3.07

California          $4.62                               Florida                       $3.12

Washington      $4.04                              Pennsylvania            $3.35

Oklahoma         $2.59                               Virginia                     $2.93

Arkansas           $2.63                               Texas.                        $2.68

My prediction: Oil prices will be back on the rise as global demand for crude rebounds driven by China’s emergence from COVID lockdown – further swayed by a worsening of the Russia-Ukraine war.  The US is taking some oil off the market by refilling our strategic petroleum reserves.

The Purchasing Managers Index (PMI)

Manufacturing PMI: The Purchasing Managers Index (PMI) is a major economic indicator derived from the monthly survey of Private Sector Companies – and measures the change in economic activity in the manufacturing sector.

• PMI>50.00 points = Expansion
• PMI<50.00 points = Contraction
• The PMI in the U.S. was 47.90 points in December 2023, down from 49.40 points in November 2023.

Automotive Economic Factors

• For the U.S. Auto Market – “Normalcy” will sum up 2024 per Cox Automotive
• Slow growth ahead, but better than a recession
• Vehicle supply is back, favoring consumers, and placing downward pressure on prices
• In 2024, we officially bid farewell to the Sellers’ Market
• The EV Market in 2024 will be the “Year of More” – More models, more incentives, more discounting, more advertising, and more sales muscle

Electric Vehicle Sales

EV Sales: 4^th Quarter sales were up only slightly from the 3^rd Quarter, but year-over-year growth was 46% pushing total sales to 1.1 million units.  EV’s share of retail sales is 7.4% of the market.

Here are the top EV States:

State                                                              EV Share of Retail Sales

California                                                     21.1%

Washington                                                15.4%

New Jersey                                                  10.3%

Nation                                                           7.4%

Connecticut                                                6.6%

Texas                                                              5.4%

New York                                                      4.7%

Pennsylvania                                               4.1%

Michigan                                                      3.1%

Ohio                                                              3.0%

• EV Status: More models, more choices, more sales, 37 new models in 2024, 34 new models in 2025
• EV Inventory: The day’s supply is well above the industry average. EV inventory increased by 92% in 2023. This is a 113 days’ supply as of 12/31/2023. ICE days supply is 69 days.
• EV Transaction Prices: Started off in January 2023 at $20,000-$25,000 higher than ICE.
• As of December 31, 2023, EV average price is $50,736 and ICE average price is $48,759. This is driven by supply inventory, higher incentives, and competition.
• EV Leasing: Expected to rise further in 2024 – Treasury announced that leased EVs not assembled in North America can receive the IRS tax credits.

Today’s Fastest Growing Competitor

BYD (Build Your Dreams) sold 525,409 electric vehicles in the 4^th Quarter of 2023 vs Tesla who sold 484,507 in the same quarter.  In the full year of 2023, Tesla sales are 1.8 million electric vehicles vs 1.57 million units for BYD. However, BYD also sold 1.44 million hybrids.

BYD was founded in 1995 as a battery maker for cell phones. It also sells hybrid gas/electric cars and forecasts to sell 3.6 million total vehicles this year.

A few BYD highlights:

• BYD has outsold VW, formerly the best-selling brand in China
• BYD has Warren Buffet Berkshire Hathaway backing
• Berkshire Hathaway took a 10% stake in BYD in 2008 for $232 million. By December 2009 this investment was worth $1 billion
• BYD is now in Europe and Southeast Asia, and is already the top EV seller in Australia, Sweden, Thailand, and Israel
• Not in the US yet for cars, but BYD has become one of the largest electric bus and truck manufacturers, a segment with an easier entry point than passenger vehicles
• US/China relations are so tense that BYD executives said the US Consumer vehicle market is effectively off-limits for now
• China companies are great copiers – first car was in 2005 and looked identical to the Toyota Corolla except for the badge – they called it the F3

BYD avoids expensive investments in automation and hires thousands of workers to handle simple processes. They typically bring in employees on short-term contracts, replacing them to avoid wage increases. Some of BYD’s lowest level factory floor workers are paid $750 a month, compared to $1,000 a month at the Tesla Shanghai plant.  They make almost all the parts for the vehicles in-house with few suppliers.  They could sell the F3 for $8,000 or half the cost of the Toyota Corolla.

The EV market and economy have slowed, and there were fewer government incentives. BYD sold 21% fewer vehicles in 2019. In 2020, they came out with a 375-mile range battery – and the total car costs $30,000-$40,000 less than a Tesla S with a similar range. Its global sales quadruples from 2020-2022. BYD is China’s top seller of EVs and plug-in hybrids. China’s market is 33% full EV and plug-in hybrid. BYD’s big push has been electric buses in the US, UK, and Japan over the past decade, and they are also building plants with more automation.

What’s the Next Bottleneck?

Over the last 24 months, chip availability used in vehicle production has been a major issue.  Elon Musk thinks of vehicles as computers on wheels – all controlled by chips. It was chips in 2022-2023 that caused a slowdown, but in 2024-2025, it could be graphite. China’s new restriction on exports of graphite – a key material for electric vehicle batteries – is casting uncertainty on US EV battery production. China, effective December 1, 2023, requires export permits for certain graphite products for use in EV batteries.

Graphite is the main component in lithium-ion batteries and accounts for more mass than lithium, cobalt, manganese, and other materials used in the cathode and elsewhere in the battery. The US needs a million tons per year – the current capacity is zero in North America.

General Automotive Highlights

• 2024 North America – Car, Truck, SUV of the Year Award
  • Car: Toyota Prius/Prius Prime
  • Truck: Ford F-Series Super Duty Pick-ups
  • SUV: Kia EV9
• Demand for EVs continued to climb, but at a slower pace than expected. Ford, GM, and others postponed or cut back investment in anticipation of a more gradual transition into an electric future
• Lithia is the number 1 Automotive group based in the US – they’ve expanded in the UK with the purchase of Jardine Motors and the Pendragon Group
• Hyundai – Amazon to sell new vehicles through Amazon’s website. Where will this go? What OEMs will follow?

Stay In Touch With the Latest In Automotive

Perficient’s automotive expertise runs broad and deep in the industry, covering the top priorities, biggest concerns, and most pressing needs of dealer groups, OEMs, suppliers, and other automotive companies. We stay in touch with the present and always keep an eye on the future, making us the best partner for your path to success. Learn more about our automotive expertise and bring us in on the conversation to accelerate your innovation.

Mary Anderson and the Windshield Wipers

Mary Anderson, who visited NYC on a snowy day in the early 1900s, saw the need for manual wipers that the driver could use from inside the vehicle. In 1905, Mary Anderson invented windshield wipers to improve driving in rain and snow. Before the invention of windshield wipers, drivers would have to repeatedly get out of their cars and clean off the windshield by hand.

Mary Anderson’s invention took time to catch on with car manufacturers – motor cars at the time were yet to catch on and had little commercial value. By 1913, however, manual windshield wipers were standard equipment on cars.

Ralph Teetor and Cruise Control

Fast forward to 1948, and a blind man named Ralph Teetor invented cruise control – a functionality that allowed for cars to maintain a constant speed to save fuel and ease traffic congestion. Of course, Mr. Teetor did not drive himself. The real reason behind the invention was his distaste for his driver, who would slow down and speed up repetitively while they were talking. Despite its seemingly simple reason, this invention had a huge impact on the automotive industry. Today, we now have adaptive cruise control, which is considered the first step in autonomous driving.

Who Made the First Automobile?

Automobiles are widely accepted as Henry Ford’s claim to fame, but the real first motor car was produced by Alexander Winton of the Winton Motor Company. However, Winton’s cars were expensive, and he could not achieve mass production. Unfortunately, this meant that he had only produced 690 cars by 1922, and he could not keep pace with Henry Ford.

Ford, who was able to build cars for the masses much less expensively utilizing his assembly line, came out on top. The Winton Motor Company ceased operations in 1924.

All three of these folks were pioneers in the automotive industry. Perhaps they gave way to more prominent names in the industry, but there is no denying the impact of their contributions.

Are You the Next Alexander Winton or Henry Ford?

Pioneers look for gaps in the marketplace where new opportunities exist for improving on current industry offerings, whether that is by delivering established products and services in a new way or introducing a completely original product, the early innovators tend to become the market leaders.

The terms “Changemaker” and “Disruptor” are becoming more and more frequently used as aspirational table stakes across the automotive industry. Of the challenges and opportunities that this creates, there is an overwhelming move within automotive to lead industry change.

While the first Motor Car was built by Alexander Winton, it took the ingenuity of Henry Ford with the modern assembly line to bring automobiles efficiently to the masses. In turn, he created the very foundation of the automotive industry.

In short, both entrepreneurs were extremely valuable and made a huge difference in the industry. Both the invention itself and the ingenuity and pragmatism of making it a success are key.

What Does Automotive Innovation Look Like Going Forward?

Today, there are more opportunities than ever in automotive.  In some ways, I feel like the pace of innovation and change is unrivaled – and it certainly must be to match the fact that consumer preferences and needs are also in a constant state of flux.

At Perficient, we have been helping OEMs with our Now, New, Next framework. This analysis is a cross-industry benchmark of customer-facing features and capabilities that help determine audience expectations, assess competitive position, and inform your product portfolio.​ We work with our clients to establish where your OEM is positioned in relation to the larger industry regarding table stakes, what is emerging, and what is happening in the next few years.

This model has been a great way to help OEMs think about their priorities and define opportunities where they want to lead and other areas where they may choose not to prioritize at this time.

We have done this modeling on EVs, connectivity, dealerships, consumer needs, and commercial vehicles, just to name a few. Our global automotive team is working with the top OEMs and leading automotive brands to help them accelerate their business outcomes.

Tap into Perficient’s automotive expertise to participate in our Now, New, Next (N3) workshop and drive your business outcomes.

Automotive innovation is only speeding up as we head into 2024, but it might not look that way when focusing on electric vehicles. In the last few months of 2023, it seemed the headlines were only filled with bad news about OEMs who had invested in EVs and struggled to get them off the lots. It’s important to lose our tunnel vision when thinking about the EV transformation – it is too limiting to only think about EVs when assessing the broader landscape of automotive innovation, even though it is such a transformative and important change.

Why Is There Such a Struggle?

Aside from the usual suspects – infrastructure, batteries, charging anxiety – part of the issue with EV adoption is unfortunately due to the top-down pressure from the government with benchmarks and goals for OEMs and dealers. Especially in the United States, these mandates and policies were widely disliked, as many felt they had not been completely thought through, or at the very least, lacked a certain understanding of consumer preferences and needs in different geographies.

EV penetration is around 7.5% in the United States, and that rise has begun to plateau. We have exhausted the early adopters of technology and need to convert the consumers who make up the masses, but the gap between the two groups is very wide. Even since the summer, the demand and supply shift with EVs has become increasingly difficult for OEMs and dealers to manage. Today, there are backlogs of EVs that are driving steep incentives: In 2022, the average price of an EV was $66k, and today, that has dropped to $51k.

Of course, the perspective on this issue varies widely by demographic. In my conversations with dealers in certain locations like San Francisco, EVs represent 45% of their sales. However, in many areas across the country, EVs make up less than 1% of sales. Further, many dealers are choosing not to sell EVs because of the high cost of certification and low demand that couldn’t be justified overall.

Opening Up a Holistic Sustainable Strategy

Instead of focusing on only EVs, we would be wise to expand our focus to innovation in sustainability. Every OEM, despite their current EV strategy, is thinking about ways to embrace sustainability in the automotive and mobility industry. As natural resources become more and more scarce, sustainable value chains are becoming increasingly important for the automotive industry.

The most successful OEMs are innovating to balance legislative requirements and consumer demands both present and future. They are working to provide consumer-tailored and valuable products in highly competitive markets. They are all about innovation, not only of technology but also of process and approach.

When I was in Europe late last year, OEM leaders I met with felt that sustainability and innovation were the focus of their organizations.  They saw EVs as a critical piece of the automotive mobility industry, but they spoke of greater sustainability. This larger sustainability approach impacts the entire ecosystem, including OEMs, suppliers, dealers, and consumers. The future of automotive must be much more holistic than just EVs – it is to be sustainable, no matter the solution it requires.

Are Hybrids the Way for Now?

Here in the United States, we are seeing this shift in a controversial way. OEMs are defining sustainability not as a full-fledged jump into EV-only sales, but as a check-in with technology that has already been around for much longer and has enjoyed more consumer acceptance: hybrids. This approach does not mean that EVs are out of the question, but that we are willing to take a step in the right direction with hybrid technology while we take more time to effectively transition our society towards EVs.

Today, hybrid vehicles already represent about 7.5% of penetration without the pressure of government mandates. My early prediction is that we will see that rise in 2024.

Sustainability is ultimately what will drive the next phase of transportation on the roadways. OEMs, dealers, suppliers, and consumers will all become more efficient and effective. We will do things differently; we will need different systems and approaches which will lead us to different experiences. The one thing that we can count on is change being constant.

Tap into Perficient’s automotive expertise to gain a sustainable competitive advantage.

Want to Hear from Other Automotive Leaders About EV Adoption?

The struggle of electrification and EV adoption has left many automotive leaders feeling defeated and looking for new ways to ignite automotive innovation. Perficient recently conducted a study surveying over 1,000 consumers about their feelings regarding electric vehicles and car-buying experiences. Now that we’ve had time to look at the insights, we’re interested in hearing from automotive leaders about their side of the experience.

Join us for a virtual coffee on us at our Electric Vehicles and Coffee Virtual Event to discuss the challenges and solutions to electrification.

When I hear the term “dealer transformation,” I always think that the term is too narrow in speaking about just the transformation within the dealership. There is no doubt that the consumer today has very different expectations and preferences concerning dealerships and shopping experiences than the consumer of ten years ago, and dealerships need to transition from a sales focus toward a more experiential focus. However, they are not the only ones that must change, and their ability to change also depends greatly on the efforts of their OEMs. 

When you think of EV-only OEMs, they don’t have dealerships – they have showrooms. A good part of their vehicles are sold online, and the showrooms are for product expertise and vehicle experiences. They avoid hard selling so they can focus on supporting the customer’s needs instead, and that is something that is needed at all dealerships. To achieve this, mindset changes must happen across the brand, not just in retail, to support these new business models. 

Customer Loyalty Depends On A Holistic Transformation

The average automotive shopper today spends approximately three months shopping for a vehicle. During those 3 months, on average, a consumer performs over 900 shopping actions, and 71% of these actions happen on the smartphone. Customers can and will now do most of their research online before they ever visit a dealership, and the quality and location of where they source their research matter. Today, a consumer is likely to explore twelve brands, consider six brands, and decide between two brands. To achieve the best research and shopping experience, the brand must use the latest and most effective technology such as AI to improve brand websites, marketing efforts, and commerce experiences. 

It is critical to acknowledge that these consumers also want to do more online transactions like they do with all their other products and services. This is why some OEMs are looking at more D2C services for consumers so they can build, price, order, and reserve their vehicles online. Some OEMs are even working with their dealerships to try a test program to see if they can sell vehicles completely online through the dealer websites. 

What Will D2C Look Like for Dealerships?

I know some dealers worry that a more D2C online experience will ultimately cut the dealer out of the process. I see a very different world: one with the OEM and dealer being partners in giving the consumers the shopping and transacting experience that they want.  The dealers could be the OEM showrooms where consumers can experience vehicles in the physical world and service those vehicles with factory-trained technicians. These services are extremely valuable and still need to be done in person so that customers can maximize their investment. 

OEMs and dealerships that can provide consumers with experiences that address their preferences are going to be the ones that gain market share and create brand loyalty. In an era where loyalty is waning, and customers have more access to more information and different brands regardless of location, OEMs and dealerships will have to secure customer trust and loyalty in new ways. 

Perficient has been leading the world’s largest automotive brands through ever-changing consumer preferences and industry challenges for decades with world-class digital strategists and technology solutions experts.  

Tap into our automotive expertise to improve brand loyalty and develop a sustainable competitive advantage. 

Alongside our partners HCLSoftware and AWS, we hosted an automotive panel in London and invited major OEMs as well as other innovative leaders in the industry. Mark Felix, the CMO of The AA in London, was the keynote speaker followed by Martin Tavener, CTO of Commerce at HCLSoftware. I’m proud to have been a part of such an esteemed panel of colleagues as Perficient’s Automotive Industry Lead, and would love to share with you the highlights of our lively discussion.

If you missed our Detroit Automotive Commerce Event, you can read the recap here.

Is Loyalty Dead?

One of the biggest concerns of automotive companies today is brand loyalty and customer churn. Consumers today want to feel as though they belong to something greater than themselves, and they are enabled with incredible technology that can help them find exactly that. Over 50% of automotive consumers are millennials who have very different expectations for their shopping, buying, and ownership experiences than the automotive shoppers of the past. They expect more to be easily available digitally and online than previous generations, and they aren’t afraid to jump from one brand to another to chase that experience.

We asked Mark Felix if he believed loyalty is dead, or if it could be revived in a new form. His perspective was that loyalty is not gone, but just that customers have a new idea of what loyalty should be: no longer is it sufficient for companies to offer points and rewards. Now, automotive companies must create a sense of community and membership in an experience that meets and exceeds their expectations.

What’s Ahead and How to Stay Ahead

Emerging technology is popping up left and right in automotive, so we wanted to ask our OEM attendees how they were dealing with EVs, autonomous vehicles, connected vehicles and products, emerging mobility, software updates, and more. More importantly, we discussed how to discern when a trend or disruptor is worth reacting to. Specifically, it was important to discuss the striking difference between two types of OEMs: while heritage OEMs are working hard to put out the vehicles and offerings that their automotive customers desire, EV-only manufacturers consider themselves to be software and technology companies creating products that go beyond the boundaries of automotive. Despite their differences, both depend on their ability to be nimble and agile while addressing changing consumer preferences and must discern wisely when to react.

Personalization and AI

For example, all the major OEMs have pointed out that personalization, AI, and machine learning are enabling are all worthy of quick prioritization and reaction. Consumers do not want generic messages, and their journeys are not linear. At the same time, OEMs must find ways to personalize throughout these non-linear journeys without completely exhausting resources and budgets. The panel spoke of how personalization translates beyond just the shopping for vehicles, but even more importantly, it creates that lifetime relationship with consumers. Perficient has worked with OEMs to create customer experiences that are deeper, unique, and helpful for consumers as they find their values align with the brand. While the strategy behind personalization is important, it is ultimately the utilization of technology that allows personalization at scale. Perficient has created virtual assistants with AI that help consumers find the right vehicle for them for them on the OEM’s website. Solutions like these not only deepen engagement but also drive increased conversions by having a much more qualified customer.

Sustainability and Mobility

Along these lines, sustainability was another huge topic. Being environmentally and socially responsible is not a new subject, yet it continues to gain momentum and importance in customers’ minds. We have seen this trend with the drive for EVs, but also for products as well. One example I gave was tire companies that are building connected tires and are looking for different materials than rubber to be more sustainable. While sustainability is not a driver for every consumer, it will be a driver for younger shoppers who are increasingly taking over the population. Even further, many of these younger consumers do not wish to own vehicles — they are leaning towards mobility solutions, which I’ve dubbed “car user-ship.”

Listening to the Voice of the Customer

At Perficient, we spent the last year conducting primary research on the EV Customer Journey.  We spoke to OEMs, consumers, and dealers to learn about their first-hand experiences with the EV transition and the preferences that automotive customers have when shopping for their next vehicles. Ultimately, we gained great insights that will help OEMs and dealers improve the customer experience and increase the adoption of EVs. Now, it is up to OEMs to listen to the voice of the customer and implement the strategies and technologies we’ve talked about to create the best customer experience.

Accelerate Your Digital Transformation

By the end of the event, it was clear that what we started with our breakfast meeting in London was just the beginning: the dialogue must and will continue. We look forward to hosting many more industry events to continue facilitating these intimate conversations.

For a deep dive into the conversation, you can read the full recap here.

Tap into our automotive expertise to accelerate your digital transformation.

We’re on the fast track to fully connected and automated vehicles. Consumers are no longer tolerating the standard non-connected car in which information is stored locally. This information dies where it stays because that car does not interact with any server that can utilize the data. For example, standard car users are missing out on:

• Updating maps automatically
• Choosing the best route
• Adjusting internal climate based on weather conditions
• Analyzing engine efficiency
• Updating music playlists

Thankfully, OEMs have been using big data for a while. They’ve been designing and building custom automotive solutions to advance customer experience and leverage competitive advantages. When all the data is organized and used properly, it allows for improvements in the quality of vehicles, such as making them safer, enriching driving experiences, and increasing the level of service.

Where Does All the Data Come From?

For OEMs, the primary source of data is the connected vehicle, but it doesn’t stop there. Secondarily, most consumers will have their other devices connected to their vehicles, such as to use as a mobile car key or link to their infotainment. Further, almost every road has stoplights, occasional construction sites, and different kinds of infrastructure that can be a source of data for passing vehicles. Not to mention, buildings and other infrastructure being upgraded with connectivity provide valuable data for both OEMs and consumers in helping them lead better, safer, and ultimately more productive lives.

How Should Connected Data Be Used?

OEMs have a huge task ahead of them when it comes to prioritizing the mass amounts of data coming from connected vehicles, devices, and infrastructure. The best approach is to focus on data that makes the largest impact for their business and their customers. For example, this data could lead to better-organized traffic flows if connected vehicles communicate well with each other and the environment they are driving in. This data can also recommend the best areas for rest stops, and in places of high accident concentration, more stoplights and other traffic interventions.

Ultimately roads can become safer and more effective. The data will be constant so that infrastructure can adapt to the new information, and everything will be working together from vehicles, drivers, and infrastructure. At the same time, this means that OEMs must prepare a solid foundation for this intake of data.

What Can Connected Data Do for Consumers?

For the consumer automotive market, big data can help drivers understand when their vehicles need repair or attention. Maintenance alerts include – but are not limited to – tire pressure, oil changes, and brake fluids that need to be checked. At the same time, that data can inform the OEM and even the dealership, allowing them to reach out as well and strengthen their relationship with the customer. Imagine reaching out to the customer to remind them to make an appointment around the same time that they’d be looking for an oil change?

What Can Connected Data Do for Automotive Insurance and Finance?

Big data can do more than alert consumers and companies about existing issues – it can also predict issues and encourage proactive approaches to maintenance. This kind of data is of special importance to insurance and captive finance companies. Not only will they be able to use data to predict the behavior of the driver and better assess qualification for loans, but also monitor driver safety and financial standing over time. For consumers, this will result in better discounts, quicker and more accurate financing approvals, and better customer experiences.

What Can Connected Data Do for Business Fleets?

Further, big data in fleet management is likely to become a huge benefit for businesses. Almost all OEMs have vehicles used for different tasks, and they all need to be controlled and coordinated somehow. It is much easier with a small number of vehicles, but what if there are hundreds or thousands of them? Fleet operations, whether it be passenger vehicles, commercial trucking, or heavy equipment, can benefit tremendously from opportunities to leverage big data for better operator and business outcomes.

These opportunities include, but are not limited to, tracking the location of fleet vehicles, predicting maintenance needs, and managing driver behavior.

Looking Forward to Big Data Advancements

Data science has influenced each aspect of the automotive industry, and there are even more technologies and advancements that spring from it. Machine learning and AI are used in automotive loans, product development, and predictive analysis for OEMs and dealerships, and data-driven credit scoring helps lenders evaluate borrower risk and make more sophisticated decisions. Big data is what will unite the technology to the business outcomes and drive unique customer experiences.

At Perficient, we have a team of the best data experts in the industry who create solutions for over 150 transportation and mobility companies in this new world of big data and analytics. We have hundreds of use cases and solutions for harnessing this data to accelerate your business outcomes. We even have a Connected Vehicles Strategic Position that lays the foundation for OEMs as they tackle these need challenges.

Accelerate your big data strategy with Perficient’s automotive expertise.