In this engaging conversation on Business Chat, I chatted with Felix Erken, co-founder of Auto Mart, who shares his insights on the evolving automotive industry and the impact of digital transformation on the second-hand vehicle market.
Felix highlights the robust nature of South Africa’s automotive market, emphasizing its world-class dealer infrastructure and the country’s role as a gateway into Africa. He notes the shift from traditional to digital marketing, with online platforms becoming the primary avenue for car sales. Felix discusses the importance of embracing digital marketing to stay competitive, citing the success of companies like “We Buy Cars” as examples of effective digital strategies.
Felix also touches on the impact of COVID-19 on the industry, noting the disruption in supply and demand dynamics and the subsequent recovery. He observes a rise in demand for vehicles, particularly cost-effective options, as people seek affordable transportation solutions.
The conversation delves into the role of AI in the automotive sector, with Felix explaining how Auto Mart is leveraging AI to enhance search capabilities and streamline the ad placement process. He acknowledges the challenges of implementing AI effectively but remains optimistic about its potential to revolutionize the industry.
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Key Quotes from Felix Erken:
- “South Africa has a world-class dealer infrastructure, comparable to America and Europe, making our market quite robust.”
- “The automotive market in South Africa is resilient. Even after COVID-19, which hit hard, the market recovered well. New car registrations are up, and while used car registrations are down now, they usually follow the trend of new cars, so we expect them to rise soon.”
- “AI is top of mind, and it’s clear that it has to be used, but the industry is not that sure on the best way to use it yet.”
- “Nothing is better than competition. It keeps you on your toes, keeps you alive or it kills you.”
- “We have to stay agile and be ready to kill it because something new and better has come along.”
