This year’s Faconauto event in Madrid brought together industry leaders and experts for important discussions on the future of Spain’s automotive industry. We attended the two-day event, to gather insights, network with industry peers, and spread the word about our Keyloop products.
Some of the key topics covered included trends in digital transformation, electrification, Europe’s challenges in energy transition and independence, and the current geopolitical landscape.
Here are four of our top takeaways from the event:
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Consolidation, collaboration and OEM relations
Manuel Díaz, PWC’s automotive specialist partner in Spain, shared his insights from a 2024 study. The findings highlighted dealer perceptions on business profitability, growth, and OEM relations.
In general terms, dealership ROI perception has experienced a downward trend, with dealers observing that margins are narrowing continuously, which in turn is weakening investment confidence. However, consolidation and inorganic growth are driving traction, for example through larger dealers acquiring smaller ones to achieve expansion.
Naturally, at a time when competition is rife, and margins continue to narrow, dealers are keen to avoid putting all their eggs in one basket. In fact, we’re seeing a rise of multi-brand dealerships as many retailers opt to diversify their brand portfolio and reduce their dependence on single manufacturers.
PWC also shone a light on the opportunity for dealers and OEMs to align in terms of vision and build upon business relations going forward. In terms of brand-dealer relationships, Toyota was recognised as the best business partner in 2024 followed by Seat, MG, and Dacia, who followed as leading brands in dealer relations.
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Digital transformation: Harnessing big data and omnichannel retailing
Lauriano Turienzo, President of the Vehicle Retail Association (AER), emphasised the rapid evolution of digitisation in the sector. The exponential volume of data being generated, with projections indicating an astonishing twelvefold increase in the amount of data by 2035, gives a sense of the pace of transformation.
As transformation accelerates, businesses acknowledge the need to integrate sophisticated digital tools into their operations. Companies are now engaging with consumers by breaking the barrier between physical and digital spaces, with platforms like TikTok increasingly being used to enhance visibility and sales. The digital world is also driving hyper-personalisation and convenience as part of the consumer journey (with “near me” searches growing as customers prioritise convenience over price when making purchasing decisions). This increasing demand for personalisation, convenience and immediacy means we’re seeing an increasing number of apps and solutions being tailored for the modern car buyer, addressing specific needs such as car-sharing, renting, sales, and aftersales services.
While physical dealerships are expected to remain relevant (due to their high conversion rates compared to online platforms) physical sites see far less traffic than the online counterpart. To stay competitive, dealerships must embrace an omnichannel approach, ensuring seamless integration between digital and in-person experiences.
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Evolution beyond the EV: A holistic approach to sustainability
Vehicle electrification remains a central theme, but Alberto Núñez Feijóo, President of the Partido Popular, and Antonio Brufau, CEO of Repsol, addressed the complexities around its implementation.
Spain’s vehicle fleet is aging with the average car being 14.5 years old, raising concerns about emissions and energy efficiency. Meanwhile, the push for electrification faces significant hurdles, including high costs and inadequate charging infrastructure.
Feijóo stressed that EVs must be affordable for all consumers, not just the wealthy, and incentives should be offered to make them more accessible. For example, discounts should be applied directly to customers at dealership rather than going through bureaucratic processes that take months or even years to reach consumers.
Electrification should not come at the cost of neglecting other efficient vehicle technologies, including new combustion engine models. Now that China has taken a dominant position in the global automotive industry, Brufau emphasised the need for European manufacturers to rethink their strategies to remain competitive. Sustainability should not be confined to EVs alone. Reducing emissions must also involve improving combustion engine technology and vehicle efficiency.
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Europe’s automotive strategy in a changing world
Global and regional dynamics were a focal point in the discussions led by Michael Dunne, expert on China, and Enrico Letta, former Prime Minister of Italy. China’s influence in the automotive and technology sectors continues to grow, challenging Europe’s position in the global marketplace.
European companies that once dominated global markets are now falling behind their Asian counterparts. That means there’s a real need for the EU to integrate its financial and energy markets. Greater regional cooperation at a European level would reduce costs and enhance stability, enabling the region to remain competitive. Public-private collaboration is also likely to play a key role in ensuring a robust investment strategy in the EU.
Additionally, regulatory standardisation across EU member states would provide economic stability and foster long-term growth. The question remains whether an independent EU should lend itself towards Chinese collaboration by promoting vehicle manufacturing investments within Europe rather than pushing away Chinese investment and taking a defensive strategy towards vehicle imports from China could pose a significant risk to the European automotive industry.
Keeping up with car buyers: the Keyloop way
One key theme throughout the event was the need for personalisation, consistency and convenience throughout the car-buyer journey in Europe’s forward-thinking marketplace. As the automotive industry evolves, embracing technology and prioritising customer experience will be crucial.
Our intuitive, consumer-focused Automotive Retail Platform, Fusion, provides a flexible platform designed to enhance every aspect of the retail journey. By adopting comprehensive, digital-first tools, businesses can adapt quickly, use data effectively, and build trust through greater transparency, positioning themselves for success in the future of automotive retail.
For more information on how Keyloop is revolutionising the realms of automotive retailing, harnessing technology to connect every stage of the car-buyer and ownership experience, learn more about Fusion today by watching our latest webinar on demand.
