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8 vital roles that chatbots play in the automotive industry

Engati Team
last edited on
September 21, 2023
4-5 mins

Table of contents

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chatbot in automobile

The automotive industry is booming and it looks like technology has to work its way up to cope with the increasing demand. Businesses are engaging their customers through chat and messenger apps every time the latter has to make purchases. With the increasing demand, we expect more advances in artificial intelligence to provide a real-time, personalised, conversational experience to customers. They no longer want to wait on call for 15 minutes just to have a 2-minute conversation with a representative. Thanks to chatbots, the automobile industry is able to handle big-ticket items such as vehicles and provide immediate support.

To maintain the customer relationship with the brand, automotive dealers and businesses are making use of chatbots and conversational marketing. There are multiple ways in which it’s working out for automotive businesses. Let’s discuss a few here.

How can chatbots help in the automotive industry?


Brand awareness

Before your customers review your products or talk to a sales representative, they prefer browsing through your automotive website. They look for deals and offers and compare them to what your competitors offer. In such a situation, these visitors would want to go with your deals if they like the UI and browsing experience-even if your prices are on the higher end. Through an automotive chatbot, you tell visitors how you are different and better than your competitors. This is how chatbots help in building brand awareness and let your prospects know that you are their best pick.


Easy & quick response

Customers visit your website with certain perceptions and expectations. They look for ease, convenience, speed, more information by putting in less effort, and simple-to-understand UI. There’s no way they are going to wait in long queues or listen to automated call recordings asking them to “stay on the line or call again later”. An AI chatbot for your dealership can provide answers to questions like, “What’s the best deal on Chevrolet Malibu?”, “I need to get my car seat covers changed”.


On-Call 24X7

Chatbots are becoming more intelligent and are on-call 24/7. They will show you the path when you look for one. When you are having a conversation, a chatbot for the automotive industry will pay attention whether it is 12 in the afternoon or 12 midnight. It’s on customer duty 24X7.


Efficient buying experience

Some people believe that the automotive industry is resistant to changes but it is one of those industries that always keeps up its game. It is one of those that introduces gadgets, inclines with fashion, works on additional security for protection - long story short - an industry that does it all. Therefore, as a domain that offers such diverse possibilities, it realises that it must offer an efficient buying experience to its customers. Hence, chatbots!

Automotive chatbots are easy to talk to, safe to share sensitive information with, and simple to report an issue if there is any.

P.S Check out our exclusive interview with Nissan’s Hussein Dajani on the revolutionization of automotive industry.


Quick turnaround time

In 2009, the U.S. bottomed out at 10.4 million sales. 2016 met the sales expectations and witnessed a stupefying 73-percent increase in just seven years. Experts strongly believe that the auto market will continue to grow and could reach 20 million units in the next few years before retreating.

The numbers are clearly increasing, and chatbot automation will only help the automotive industry keep up with the increasing demand. Would you rather have 20 executives manage car buyers or a single Automotive chatbot to do it at a faster (and cheaper) pace?


Increased efficiency in bookings

Customers who want to buy a car want to buy the best available option that comes easily within their budget. Now, of course, there are customers who have their eyes fixed on one of those ‘beauties,’ and they know exactly which customisations they are looking for. So, they’d want to get them done and see them for real on their car at the earliest. On the other hand, customers who aren’t very confident about the choices, they’d expect to receive help that’s not just immediately available but is also efficient. So, why not let the chatbot handle individual customisations by providing a personalised experience to one and all?


Enhanced customer-business relationship

There are some customers who simply admire cars and adore their design. It’s something very personal to them. If automotive business owners share the same kind of affection towards cars and let their customers feel that they know how important it is to them, then why wouldn’t the customer want to consult them every single time they need something?

A car, for some customers, isn’t just a commodity. It’s a passion. If auto business owners feel the same way, that’s going to build a relationship for the rest of their lives. So, what’s better than infusing the same emotions to a chatbot that can be available to these customers 24X7?

Enhance customer-business relationship through chatbot
Chatbots strengthen customer relationships

In fact, chatbots are smart and emotionally intelligent now. They can give details about mileage, car insurance, car loans, and interest rates, subprime reverse mortgage loans, latest customisations and designs, and more. They can simply pick up the intent from a conversation, match it with an entity and respond to customer queries within seconds, thus boosting your customer engagement levels.


Easy tracking of customer data

Lead generation, answering individual customer queries, keeping track of personal preferences, sending a push notification whenever the best deal comes in for a customer, and taking care of a lot more personalised things - that’s what intelligent chatbots do. They capture customer data, create a personalised journey around it, and keep customer data safe and secure. Further, in the era of data breach and mistrust, smart chatbots make customers feel safe.

What role do chatbots play in streamlining the car buying process?

Providing 24/7 support

Chatbots can provide round-the-clock support to potential car buyers, even outside of normal business hours. This means customers can get their questions answered at any time, increasing the likelihood of making a purchase.

Qualifying leads

Chatbots can help qualify leads by asking questions about the customer's preferences, budget, and other factors that influence their buying decision. This information can be used to guide the customer towards a specific vehicle or to suggest additional options that meet their needs.

Assisting with test drives

Some chatbots can schedule test drives with dealerships, eliminating the need for customers to navigate complicated online forms or wait on hold for a sales representative.

Providing personalized recommendations:

By analyzing a customer's preferences and browsing history, chatbots can make personalized vehicle recommendations and even suggest add-ons or accessories that may be of interest.

Facilitating financing

Chatbots can also assist with financing by providing information on loan options, interest rates, and other financial considerations. This can help customers make informed decisions and streamline the financing process.

Overall, chatbots can play a crucial role in streamlining the car buying process by providing 24/7 support, qualifying leads, assisting with test drives, providing personalized recommendations, and facilitating financing. By automating many of the routine tasks involved in the car buying process, chatbots can save time and reduce frustration for both customers and sales representatives.


As auto dealerships look to invest in innovative ways to win shoppers over, chatbots and AI technology shouldn’t be overlooked. Today’s consumers are increasingly looking for more meaningful, personalised experiences. The automotive companies will have to continue to evolve and embrace the future of car buying – humans and chatbots included.

Ready to take a spin on chatbots for the automotive industry? Register with Engati to get started.

Engati Team

At the forefront for digital customer experience, Engati helps you reimagine the customer journey through engagement-first solutions, spanning automation and live chat.

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