A Digital Transforming Plan for Vehicle Industry: Evidence from Audi

Abstract

With the development of the Internet and the impact of COVID-19, many vehicle companies have started digital transformation in order to unlock the potential of the sinking market and promote profits by developing online service. The direct-sales model and customization are highly compatible with the online service and provides a better development environment for new energy vehicles. Based on the strong economic foundation of FAW Audi, this study investigates the building of a digital system to contact customers online of it. To start the direct-sales model, website, mini-programs, and applications will connect customers with the company rather than 4S stores. Collecting and analyzing customers’ needs from basic automobile elements (e.g., color and shape) to each component through these online methods to start customized businesses, so as to achieve basic digital transformation and change the relatively backward digital level in the Chinese vehicle market. In addition, through the digital system, the company, driverless vehicles and customers are connected together which is the basic of starting online car hailing business, by which FAW Audi will further enhance its influence. These results shed light on guiding further exploration of digital transforming in vehicle industry.