There's no business like Show business

Automotive mobility is undergoing dramatic changes. Not just with new propulsion technologies like electric vehicles and hybrids, or new connected technologies like Apple CarPlay and Over-the-Air (OTA) software updates, or even the greater demand for Crossover Utility (CUV) body styles. But also how we use and share cars is changing too, with on-demand rentals, peer-to-peer car sharing, and EV vehicle-to-grid capabilities. The one thing that seems like it needs to catch up with all of this change is automotive marketing! My trip to the NY Auto Show demonstrated this loud and clear.?

Some context first. Automotive marketing is a big business, with Automakers spending over $13 billion a year alone just on digital advertising (see chart). But today automotive marketing has many dials to turn, like mobile phone ads, social media stories, influencers, and product placements and promotional tie-ins. But one that has been around for years and years, really since the inception of the automobile, as been the Auto Show.?

Most manufacturer's have had auto show displays each year, especially when their model changes were all made each September. And many carmakers have done 60-70 shows in the US market each year, counting the local and regional shows that drive consumer traffic to their dealers. But there have always been a few big shows where the "Press Days" were held to allow Auto OEM's to make their big product reveal announcements, and to get some press coverage by journalists from all over the world, all in one big event. Traditionally in the US market the Detroit, LA, Chicago, and NY Auto Shows were the big 4 shows. Not so much anymore. Even before the pandemic, many automaker's were pulling out of auto shows completely, as these displays became more and more expensive, as the Car and Driver story below illustrates. Spending $20 million on an auto show display sounds pretty crazy.?

But the vast majority of Auto Show's serve the key purpose for local auto retailers of bringing together a myriad of car choices for consumers all in one place. Auto dealers love to locate their retail stores next to each other so that when you are on a dealer's lot looking at a Ford, for example, you might also look up to see a big Chevrolet sign across the street beckoning you to check out their models next. At an auto show everyone has a chance to showcase their best products in every category, and auto consumers can climb into a new car without a salesman hovering over them. It's a great place to bring the whole family so that you can find out if you all fit into that new electric CUV you are thinking about buying?before?you go online and order it. So from an auto consumer point-of-view, a local Auto Show is a very helpful place to learn about all the new cars and trucks efficiently, and with a low hassle factor. Think about how important this can be for new technology like the transition to electric vehicles! What a great opportunity for automakers to educate their potential buyers. Sadly, many are missing this by not even displaying their cars. Absent this year at the NY Auto Show were Mercedes-Benz, BMW, Audi, Porsche, Jaguar Land Rover, and even Cadillac, among others.?

On the positive side, there is no place like New York City, and we felt so at home at the Javits Convention Center after two years absence. And it was amazing that the lower floor, which formerly was devoted to showcasing trucks and SUV's, was entirely devoted to electric vehicles, including a test-track where you could take a short "ride" in EV models from manufacturer's as varied as Hyundai and Ford, as well as newcomers like VinFast. It was great. There were even some charging equipment companies, and EV taxi companies present (it is NY after all.)

Speaking of VinFast, this Vietnamese electric vehicle upstart showed all 5 of its models (all of them electric) and talked about its charging partners like Electrify America, it's new soon-to-be-built factory in North Carolina, and even its connected services upgrade capability. We had a good look through all the vehicles in display, and can say that VinFast has all the features needed for each segment, and has priced their SUV's competitively. They even offer two sizes of battery, which they lease separately from the base vehicle itself. Great to see such a full line-up of EV's offered from a new company like this. And their team has so much enthusiasm and energy!?

VinFast has worked hard to make the EV experience work for everyone, with lots of good information at the driver's fingertips about the battery charge level, for example. VinFast has even partnered with Cerence to create a "digital twin" of their vehicles to help keep this experience current. In their collaboration announcement the companies said it was "completely cloud- and software-based, and that Cerence’s digital twin capabilities will enable VinFast to essentially create a virtual representation of its entire car, including software, mechanics, electrics, and physical behavior, along with driver data and environmental data in the cloud. VinFast will not only be able to offer its drivers extended digital cockpit capabilities that enhance the driving experience, including access to deeper information about the car, but also enable?proactive AI notifications?that leverage this real-time data to update and inform drivers in new ways." It's terrific to see Digital Twin's being launched and communicated to consumers as a kind of new tech that helps them keep their vehicle current and updated.?

Another newcomer to the NY Auto Show was Indi EV, a California-based EV start up with an interesting way of differentiating themselves and founded by Shi Hai, a Chinese mobile gaming entrepreneur. The Indi EV ONE focuses on delivering a solid EV "skateboard" that has a 95kWh battery delivering nearly 300 miles on a charge underneath a comfortable CUV body. Inside is a Vehicle Integrated Computer (VIC) that even has a hood-glass portal window to showcase it, that can power games, connected services, and other non-driving passenger entertainment experiences using an open-source development approach. While not yet autonomous, the Indi EV ONE seems ideally suited to becoming driverless pretty soon.?

An interesting marketing aspect we see more and more of around the current transformation to electric vehicles is the idea that EV's can have an "adventure" too. A good example is a brand like Subaru, which historically focused its message on its all-wheel drive (awd) capability (e.g., "from the wheels that slip to the wheels that grip!") but has made big sales gains over the last decade selling CUV's to families and safety-minded consumers that never venture off-road. At the NY Auto Show Subaru prominently displayed its new Solterra electric vehicle in a simulated "rugged" environment, loaded with camping gear. No discussion about where to find the charging ports in Moab, but maybe the Solterra drivers can use the Rivian ones already installed there?

And just wanted to mention all the great race and performance cars on display in NY. Auto shows are such a great place to get a closer look at cars that we don't see on the street. Ford had a pair of Ford GT's, celebrating the Holman-Moody car (#5) that placed on the podium at the 1966 LeMan's race. It reminds me of the Speed Racer Mach 5 car. Probably because it was the inspiration for it!

And finally, Ford was even demonstrating its EV performance chops with a mini drag strip located right behind their NY Auto Show floor display. They had an F-150 Lightning people could ride in for what looked like a 250 foot "strip" that was actually pretty amazing. Most people do not appreciate the instant acceleration that electric vehicles provide until they see it first hand. A great way to put the SHO back in the Auto Show! ;) Check it out here!

Learn more about how you can better prepare for the new mobility future, and the change and opportunity this creates, by contacting us at Automobility Advisors. Click below!

https://automobilityadvisors.com/

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