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How and why automakers are entering into the metaverse

Metaverse presents a unique opportunity for automakers to connect with customers and create new experiences.

Expert's views on the contribution of Metaverse towards automotive industry
Expert's views on the contribution of Metaverse towards automotive industry

By Kanav Singla

The metaverse is already beginning to take shape and is expected to impact every industry, especially the automotive industry. Its influence is already affecting every aspect of the automotive industry, including production, product customization, community, and customer loyalty. Furthermore, a wide range of new technologies is making the convergence of the physical and digital worlds possible. Given that one of the metaverse’s key characteristics is its potential to give users more control over the creation and customization of goods, the automotive industry is one of the sectors most ready to embrace its promise. This is opening up new possibilities for engagement with the end consumers.

The Rise of the Metaverse

Although the idea of the metaverse has been around for a long, it has recently gained a lot of attention. It refers to a collaborative virtual shared place produced by the fusion of the internet, virtual reality, and augmented reality. Avatars let users access the metaverse and interact with other users, virtual items, and locations in real time. The idea of the metaverse has been around for a while, but it is now a reality because of technological breakthroughs in gaming, XR, cloud streaming, and AI. It has immense potential and is changing how we interact socially, play and work.

How Automakers are Entering the Metaverse

Automakers are currently using the metaverse’s potential to expand their consumer base and offer novel experiences. Automakers are deploying online 3D visualization solutions that let clients virtually experience and customize their vehicles. When compared to conventional configurators, where clients can only view static photos of the car, this strategy is offering a more participatory experience. In addition, customers can interact with the cars using their avatars at virtual showrooms and dealerships where the companies display their vehicles. When compared to traditional showrooms, where buyers can only see a limited inventory of cars with limited interactions, this method is offering a more immersive experience.

Automakers are also using the metaverse to construct virtual test drives. Thus, buyers can now digitally test drive an automobile to get a sense of its features and performance. Customers are using this experience to virtually feel the speed and handling of their cars and those still waiting to make a purchase or unable to reach the car physically are finding this strategy especially helpful.

Why Automakers are Entering the Metaverse

The metaverse presents a unique opportunity for automakers to connect with customers and create new experiences. Here are some reasons why automakers are entering into the metaverse-

Reach a wider audience: Owing to the global nature of the metaverse, organizations can connect with consumers from all over the world. By giving automakers a platform to expose their automobiles to a larger audience, this strategy helps them expand the reach and recognition of their brands.

Create new experiences: The metaverse gives automakers a platform to offer their customers new experiences. Buyers can now engage with other users in a simulated environment, customize an automobile, and take it for a virtual test drive. Compared to conventional methods, this strategy offers a more immersive experience.

Stay ahead of the competition: The automotive industry is fiercely competitive, and automakers are constantly seeking methods to set themselves apart from rivals. They are doing this by offering distinctive experiences that they might not otherwise be able to give without stepping into the metaverse.

Explore new revenue streams: The metaverse offers automakers new revenue opportunities. For instance, automakers can sell virtual goods connected to their vehicles, such as virtual car accessories. This strategy provides automakers with a new source of income and has the potential to boost actual vehicle sales and customer loyalty.

Reduce costs: Automakers can use the metaverse to cut back on marketing and advertising expenses. Conventional marketing and advertising strategies might be expensive, but the metaverse offers a more economical solution. Automakers are using virtual showrooms and virtual dealerships to display their vehicles, eliminating the need for inventory heavy physical showrooms and their accompanying expenses.

Final Takeaway!

For automobile manufacturers, the metaverse has opened fresh possibilities for engaging with consumers and developing distinctive experiences. Automakers are reaching a larger audience, setting themselves apart from their rivals, and finding new revenue streams by utilizing the metaverse’s possibilities. Adoption of metaverse rests on a clear understanding of the objectives brands want to drive from it and investment into gaming, XR, & cloud streaming technology, and a development partner that understands their industry, customer, and can help them reach their target faster and efficiently. The way we live, work, and play is expected to change, and automakers are eager to seize this chance. Observing how manufacturers continue to use their potential to develop immersive experiences as the metaverse develops will be intriguing.

The author is founder and CEO, Metadome.ai

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First published on: 19-03-2023 at 14:31 IST