Metaverse 'Driving' The Auto Sector Metaverse and gaming have been the dynamic duo as people continue to demand immersive games. However, metaverse has expanded its use-cases to different sectors. Metaverse has entered healthcare, automobile, real-estate, etc. Automobile is the market that has adopted metaverse the fastest with leading brands having their own metaverse.
By Saptak Bardhan •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Virtual worlds have taken over the world with vivid ideas and real life-like graphics. The virtual worlds have become a mainstay under the umbrella of Web3.0 technology. Metaverse has become a popular term in today's day and age. The metaverse is a digital reality that combines aspects of social media, online gaming, augmented reality, virtual reality, and cryptocurrencies to allow users to interact virtually. Auto sector has witnessed major adoption of the technology as it continues to get suitors across different sectors.
Metaverse and gaming have been the dynamic duo as people continue to demand immersive games. However, metaverse has expanded its use-cases to different sectors. Metaverse has entered healthcare, automobile, real-estate, etc. Automobile is the market that has adopted metaverse the fastest with leading brands having their own metaverse.
The leading brands showcased their metaverse in the Auto Expo earlier this year. The virtual world has grown into the auto space so much so that it has now become a mainstay for the space. Virtual reality has been solving real life problems for the entire automobile sector in India. Immersive technologies that include augmented reality (AR) and virtual reality (VR) have massively helped brands improve the customer interaction by having an immersive and connected buying experience.
Virtual reality has ensured that customers can look at the cars from the comfort of their own homes. The technology has enabled the automobile brands to virtualize processes in the car purchasing journey of the customer. All aspects have been carefully integrated in the metaerse whether that be showcasing the bestproduct fit or even making the final purchase decision.
25% of people would be spending approximately an hour every single day on the metaverse by 2026. The numbers signify the massive potential of metaverse.
According to a report by NASSCOM, virtual showrooms could lead to higher engagement and improve the average time spent by potential buyers by 10 times. Gartner, a research company, suggests 25 per cent of people would be spending approximately an hour every single day on the metaverse by 2026. The numbers signify the massive potential of metaverse.
The virtual showrooms being highly interactive platforms, allow customers to customize and configure vehicles according to their choices. Customers are also given the option to take virtual test drives as well as interact with sales representatives in real time making the experience all the more smooth and seamless.
"The customer will go online to explore the cars they like thoroughly, in 3D and will be able to customize them to their liking. A sales consultant would join in the virtual world to assist. If interested, the nearest fulfilment center will arrange a test drive for the customer at his/her doorstep while the signing and payments would all happen securely in the virtual world," said Varun Shah, Co-founder, Eccentric Engines in an interaction with Entrepreneur India Another advantage of the technology is that showroom visits have significantly reduced which saves approximately four to five times of the resources used as well as time. Automotive Retail is unlike regular SaaS and needs a thorough understanding of underlying systems. While being successful, the technology needs to evolve further to make a bigger impact on the automobile sector.
"Maruti started its metaverse journey with the launch of Grand Vitara. Not just limiting to customer convenience or customer experience, you can take your product experience to remote locations without the need of a showroom. We have also found that people who are engaging via the 'Nexaverse' space, their engagement rates are much better than without it," says Shahshank Srivastava, Executive Director, Maruti Suzuki India Ltd.
Personalization has been king for a very long time across all sectors. The metaverse has given the customers the freedom to experiment with the kind of car they would like to have, be it in terms of parts they would require or a certain kind of look they desire. The customization would be carried out in an extremely immersive and interactive environment, further engaging customers customizing the vehicle.
"A lot of youngsters spend their time in the digital world and that is where the world is moving to. Being an autotech brand a future forward brand, we decided that we needed to be there in order to understand and explore the opportunities in the metaverse. We built the entire MGverse block by block and today we have a digital twin in the MGverse which would be a real immersive experience," explains Gaurav Gupta, Chief Commercial Officer, MG Motor India.
While the technology is being considered young, the potential of metaverse in automobile sector is immense. Product launches earlier were strictly closed door events but they have become open to all due to the immersive nature of the metaverse. Virtual car launches would revolutionize the introduction of newer models. Popular belief among tech enthusiasts is that metaverse is all talk, no show. But, the adoption of the technology by the big players is pushing the case for the use cases of immersive technology in the auto sector. While giving customers the freedom of design, the manufacturers also attain the behavioural data of the customers making it easier to market as well as showcasing car. Not only that, the metaverse would increase revenue, brand awareness and help in generating leads.
