For over a century, the car business has been about a simple thing: how the manufacturer and the dealer work together. Now, that’s changing. New tech, shifting customer wants, and higher costs are making both sides rethink how they grow.
To get a better look at what’s next for this relationship, we talked to Vinay Piparsania, Founder and Principal of MillenStrat Advisory & Research. Vinay’s worked in India, the Middle East, and APAC, and he’s watched dealer networks change from many angles. He’s been a leader at a OEM, run dealerships, and now advises and mentors future auto leaders.
Q1. You’ve led changes in many places. What’s still stopping OEMs and dealers from growing steadily together?
The biggest thing is not being on the same page. OEMs and dealers often want different things. Manufacturers need to show good numbers every three months, while dealers are trying to stay profitable and run things smoothly day to day. When one side is all about selling more and the other is just trying to survive, you get problems: stress, discounts, low profits, and quick fixes that hurt the brand in the long run.
Data is another big issue. OEMs know about products and the market, but dealers know what customers want. But these systems rarely talk to each other in real time. Because of that, you miss chances to sell more, fix problems, or keep customers happy.
There’s also a skills gap. A lot of dealerships are still run like family businesses instead of professional companies. Training in money matters, leadership, and using digital tools is often limited, which slows down change.
And the whole setup needs to change. Big, expensive showrooms and old-fashioned service bays don’t fit how people buy cars now. Customers now do research online, ask for test drives at home, and want flexible ways to own a car. The structure hasn’t caught up with what people are doing.
If OEMs and dealers want to grow steadily, they need to see themselves as partners in the customer’s experience, not just a buyer and seller.
Q2. What should OEMs and dealers do differently to keep up with digital, customer-focused ways of doing business while still making money?
They need to think past just the first sale. The real money is in the relationship. Profit will come from keeping customers, not from discounts. Things like accessories, insurance renewals, service plans, and loyalty programs are the new ways to make a steady income.
OEMs should make their data more helpful for dealers, not just give them access to it. When a dealer knows what a customer will likely need next, they can reach out proactively instead of waiting for the customer to come to them.
OEMs need to stop focusing only on hitting targets and start building relationships. Monthly numbers can’t be the only thing that matters. The real measure is how much a customer is worth over their lifetime. Digital tools, data analysis, and talking to people can make that happen.
Being digital-first isn’t just about adding more online stuff. It’s about putting the customer at the heart of every decision and interaction.
– Vinay Piparsania, Founder and Principal, MillenStrat Advisory & Research
Q3. Dealer systems are often about just getting the deal done. What should the next systems do better?
Most systems are like record books. They show what happened last month, but don’t help much with what should happen next. The next systems need to change that.
They need to create a single view of the customer, where one record connects sales, service, money, insurance, and online interactions. They should also predict what might happen, like which customers might leave or which leads are most likely to turn into sales.
Connecting things is also key. These systems need to talk to OEM databases, banks, insurance companies, and transportation partners. A customer’s experience should never be messed up because two systems can’t connect.
And everything needs to work on mobile. Business happens everywhere now, not just at the dealership. Dealers should be able to reach customers through phones, social media, or online channels whenever and wherever they need to.
If we do this right, dealer systems will stop being just for the back office and start helping the business grow.
Q4. You’ve worked with both fancy and regular brands. What can Indian OEMs and dealers learn from what works around the world, and where should India do its own thing?
What works in other countries can give us ideas, but we can’t just copy them.
From luxury brands, we can learn to be consistent, making sure every customer feels valued at every point. From the big mass-market brands, we can learn about the following processes: scaling up and making money from after-sales service.
But India needs its own way of doing things. Our customers want good value but also know their tech. They want great experiences but are careful about price. The answer is to be smart about doing things: offering personalised service on a large scale while staying efficient.
Local culture also matters a lot. A dealership in one city faces different things than one in another place. Language, community, and understanding the culture all play a part.
So, the Indian way is about finding a balance: using global standards but adapting them to local needs. That’s where our strength is.
Q5. How do advising and mentoring help future auto leaders deal with digital changes?
Buying tech is easy. Knowing what to do with it is harder.
The next leaders are entering a fast-changing world. They’re dealing with electric vehicles, online sales, connected cars, and new ways to own a car all at once. What they need most isn’t more tools, but more direction.
Advising programs can give them structure and clear goals. They connect digital efforts to real business results. Mentoring adds a different view. It helps young leaders learn to make good calls, be patient, and work with people, which are just as important as tech skills.
When you put both together, dealerships don’t just go digital. They become flexible, modern businesses ready for the future.
Wrapping Up
Vinay Piparsania’s view shows a key point: real change doesn’t start with tech; it starts with getting on the same page. When OEMs and dealers share data, goals, and responsibility, they stop fighting over the same sale and start helping the same customer.
That’s how the car business goes from quick fixes to long-term success.
About The Expert
Vinay has been a leader for over three decades in OEMs, dealerships, and advisory roles. He’s worked in India, APAC, and the Middle East, leading business changes, brand strategy, and new retail programs.
At MillenStrat Advisory & Research, he helps organisations connect their plans with action through advice, leadership mentoring, and digital programs.