Core Insights - The digital transformation of the automotive circulation industry has shifted from an optional choice to a necessity, yet it remains at a stage of "localized penetration deep, global collaboration weak" compared to upstream manufacturing and other retail sectors [2] - The automotive circulation industry in China is lagging behind other retail sectors in digitalization, with significant room for improvement in efficiency and customer engagement [2][3] Digital Pathways - The automotive circulation industry's digital penetration is notably lower than that of upstream manufacturing and consumer retail, with only 30% of after-sales services being online, while upstream manufacturing has achieved comprehensive digital coverage [3] - Successful digital practices in the industry include the integration of technology and scenarios, such as the use of IoT and satellite positioning for real-time vehicle tracking and risk warning systems [3] Challenges in Digitalization - The industry faces significant challenges, including "data silos" that hinder collaboration among manufacturers, dealers, and financial institutions, preventing seamless data flow throughout the vehicle lifecycle [4] - Many companies focus their digital investments on short-term marketing gains rather than long-term ecosystem development, leading to underinvestment in areas like service standardization and operational intelligence [4] - Small and medium-sized enterprises struggle with digital capabilities, with over 80% of small 4S stores still relying on traditional management methods, exacerbated by insufficient digital infrastructure in less developed regions [4] Dual-Driven Digital Strategy - The automotive industry is transitioning towards electrification and intelligence, with digitalization becoming a key theme for dealer development [5] - Future automotive dealers are expected to evolve into "digital merchants," leveraging digital marketing and operational efficiencies to enhance customer engagement and service delivery [6] - Recommendations for digital transformation include building a comprehensive data platform for industry collaboration, focusing on both service digitalization and digital service innovation, and enhancing accessibility for small enterprises [6][7] Market Adaptation - The automotive circulation industry is facing systemic challenges due to declining new car sales and increased competition, prompting 4S groups to explore partnerships with independent after-sales brands like Tmall Car [8] - Tmall Car's digital capabilities are seen as beneficial for dealers, allowing them to adapt to new operational models and improve service efficiency [8][9] - The integration of AI and digital tools in after-sales services is enhancing operational efficiency and customer experience, with features like automated diagnostics and personalized marketing [9]