The automotive industry is no stranger to change, but the speed, scale and complexity of what’s happening now is forcing retailers, OEMs and technology partners to rethink how prepared they really are.
In a recent episode of Drivetime, the global auto tech podcast powered by Keyloop, host Jacqui sat down with Niel Hiscox, Head of Universes Media and Clarify, to explore what’s really happening beneath the headlines in global automotive retail.
From disconnected dealer technology stacks and AI uncertainty to the rapid rise of Chinese OEMs and the reality of EV adoption, the conversation lands on a clear theme: the pace of change is increasing – and preparedness matters more than prediction.
Here are the standout takeaways.
Dealership technology isn’t failing, but it’s not aligned
One of the clearest insights from Clarify’s Canadian Automotive Retail Technology (CART) study is that dealer dissatisfaction with technology is less about the tools themselves and more about fit and utilisation.
Retailers are grappling with:
- Highly fragmented tech stacks (DMS, CRM, websites, add-ons)
- Poor data integration and multiple customer records
- Technology that doesn’t clearly map to real business problems
The biggest drivers of dissatisfaction are:
- Whether the technology actually solves the dealer’s core business challenges
- How much of the functionality is genuinely being used
In short, retailers aren’t lacking features; they’re short of coherent, outcome-led technology strategies.
The industry still sells features, not business outcomes
A recurring frustration for dealers is that technology vendors often lead with what their product does, rather than why it matters to the dealer’s business.
Niel highlights a structural issue:
- Dealers are expected to assess complex solutions on their own
- The burden of “joining the dots” sits with the retailer, not the vendor
As a result, new advisory roles and solution architects have emerged to help dealerships understand:
- What technology they already have
- How (or if) systems talk to one another
- Where real efficiency gains actually exist
The opportunity for vendors is clear: start with the retailer’s problem, not the product demo.
AI urgency is real, but confidence is not
AI was everywhere at NADA, but enthusiasm is mixed with uncertainty. Dealers are leaning in, particularly across sales and marketing and CRM and customer communications.
However, the CART data reveals a gap:
Leadership often believes the organisation is “further along” with AI than frontline users experience in practice
Crucially, AI readiness depends on data readiness. Disconnected, poorly structured data limits AI’s value because, as Niel puts it, AI is ultimately just maths applied to data. If the data is messy, the outcomes will be too.
Bottom line: AI isn’t a shortcut – it’s an amplifier of whatever foundations already exist.
Chinese OEMs aren’t coming – they’re already here
One of the most striking discussions centres on Chinese automotive manufacturers and why many Western markets still underestimate them.
Key points:
- Chinese OEMs have mastered “micro manufacturing” – making profitable changes in small increments, fast
- Product feedback can translate into production changes in months, not years
- Vehicle development cycles more closely resemble consumer electronics than traditional automotive
This speed advantage creates a widening gap. Tariffs may buy time, but without meaningful change, they risk simply delaying the inevitable.
Retailers, meanwhile, face real tension:
- New-brand opportunities versus existing franchise investment
- Growth in one area inevitably creates pressure elsewhere
Change here isn’t theoretical – it’s operational, financial and emotional for dealer groups.
Technology inside the vehicle is now a differentiator
Chinese vehicles are arriving highly specified, software-driven and designed for digitally native consumers.
Niel notes:
- In-vehicle technology is where the capability gap is most visible
- Chinese consumers expect constant updates, similar to smartphone refresh cycles
This challenges long-held norms around five-year product cycles and mid-life refreshes, and forces Western OEMs and retailers to rethink expectations.
EV reality check: hybrids are the bridge, not a failure
When it comes to electrification, pragmatism dominates the discussion.
In markets like Canada:
- Cold climates, long distances and limited charging infrastructure remain major barriers
- Pure EV mandates have outpaced infrastructure reality
The likely result?
- A decade of hybrids – plug-in, extended-range and traditional
- Hybrids providing consumer confidence while funding longer-term EV development
The episode reinforces that forcing adoption doesn’t build trust – enabling choice does.
The new skill dealerships need: pivot readiness
Perhaps the most important takeaway isn’t about technology or product at all. It’s about mindset.
Niel describes the growing need for organisations to be:
- Comfortable with uncertainty
- Ready to adapt roles, workflows and value definitions
- Willing to challenge long-standing profit centres (including F&I models)
True resilience isn’t about having the answers. It’s about building teams and systems that can pivot without panic.
Final thought: change is inevitable. Readiness is optional.
Across technology, AI, electrification and global competition, one message comes through clearly: the automotive industry isn’t short of change – it’s short of alignment.
Dealers, OEMs and partners that focus on:
- Clear business outcomes
- Strong data foundations
- Organisation-wide strategy rather than siloed fixes
will be far better positioned for what comes next.
And as this episode makes clear, what comes next may arrive much faster than we expect.
