Posted by AI for Automotive Dealers for profit & scale
Our team has talked to our customers – Auto dealers & also industry knowns. Question buzzes to our minds – Auto Dealerships: Rising Profits or Growing Risks? Some shut down dealerships & some others are making huge profits, expanding & even investing those profits in new businesses – Real Estate, Tech, AI.
Auto Dealerships: Why Some Win While Others Fall Behind
Gone are the days when dealers could set up shop & relax back. Customer would walk-in & dealers would do great sales, profits & earn from after sales. Today dealers staff needs to be efficient, follow up with customers.
One CEO of an Auto Dealer told me – I have 40 staff members. We can deal with a maximum number of customers in a month. But what happens to customer who enquired 3 months ago?
Dealerships’ Profit & Decline paths
There are two sets of people – I meet. One say – “Market is down or blame brand”. Others say – “Yes market is changing, What I can improve”
Customer today has more choices than before. There’s competition from multiple sides. There are online sellers with tie ups with dealers. VC backed firms who can give discounts.
But there are certain things in Dealers’ hands.
The Gap Between Winners and Losers
A 2025 survey found that 6 out of 10 dealers still struggle with digital tools. On the other hand, dealers using smarter systems report 27% more appointments and 24% higher chances of repeat buyers.
I saw the difference myself. A dealer that I visited as customer explained me sustainability leather. While I am interested only about a Rooftop car.
How can a dealer know more about customers’ needs? How to know about 1000s of them?
In fact, every dealer using our AI tools reported a profit rise in 2025. Nearly 1 in 5 saw their profits grow by over 30%. Dealers not adapting could lose 15–20% of their customers by 2030 [Forrester, 2024].
Market is good for some, Killing others
Around 4.4 lakh vehicles sat in showrooms, waiting to be sold in India. While some dealers were so flourishing.
A couple of dealers that we talked to – were earning so well that they wanted to invest in a Tech & AI company. They had been early investor in Ather & understood what Ather was few years ago, AI is at that point today.
Other dealership I spoke to – their next gen wasn’t ready to continue, so they closed.
Auto Dealership – Towards profits & reduce risk
First, let’s stop blaming market. Market overall is growing. The overall car market to grow by 7.3% a year, aiming for 8.36 million units by 2030. A rising middle class—around 60 million strong—and over 3.5 lakh wealthy individuals are driving this demand.
So market is there & growing. It’s Dealership systems which need to grow
The difference from earlier days? Today customer has many more choices. They deal, they negotiate. Market changes so fast.
Most dealers rely on simple walk-in. One CEO of Auto Dealership told me:
A customer or family which has taken time to visit dealer is primed up – A CEO told me
That’s a fair point. But this customer may be started looking car months ago & made up mind months ago?
How can you be in touch to take his decision towards your dealership?
What Makes Some Dealers Successful? Dealerships’ Profit pat
Simple – Dealers doing well aren’t working harder. They’re working smarter. They engage 1000s of customers with technology & AI, do timely follow ups, after sales.
Tech can reach 1000s & lakhs of customers in a month, engage them, ones interested can book test drive at fraction of cost.
Tools like Vaayu’s AI Kavya can do all of these, when they need service, and what they might buy next. Dealers can then reach out at just the right time—without needing more staff. Learn more here.
For example, one dealer used AI to spot that a regular service customer might be ready to trade in their old car. That small insight helped close a new sale.
A 2025 KPMG study says that AI can cut costs by up to 50% by predicting which cars will sell and how much stock is needed [KPMG, 2025].
What Happens If You Wait?
The market is changing quickly. Automotive OEM, new age startups are growing, with strong & better tech & data systems. Dealers also have started using tech & AI. They change with market faster than others.
Dealers still using spreadsheets or old CRMs often lose customers. A 2025 Frost & Sullivan study warns that if things don’t change, some dealers may even shut down due to unsold cars and rising costs [Frost & Sullivan, 2025].
Take One Step Today
By 2029, India’s auto market will be worth ₹15 lakh crore [$187.85 billion] Dealers who stay ahead will be those who use simple tools to reach more customers—before and after a sale.
You don’t need to start big. Just take one step: check if your current system helps you follow up with customers. If not, explore tools like Vaayu AI that help connect with thousands, one at a time.
I’ve seen dealers turn around their business with just a few changes. Don’t wait until it’s too late.
If you are an Automotive expert, Dealer – let’s catch up over coffee for a talk towards progress.
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