Car sales are down, and costly dealership concepts no longer fit the times. New builds are often delayed. For digital signage providers, this means projects are shrinking or put on hold.
Many automotive brands now expect their dealers to maintain modern, brand-specific showrooms that reflect a consistent corporate image. Over the years, expectations from brand managers and customers alike have grown – not just in terms of vehicle presentation, but also in the overall buying experience. Digital signage, once a premium feature, is now seen as essential, even for budget brands.
For premium manufacturers, showroom standards have reached a level that requires enormous financial investment. According to Automobilwoche, Porsche dealers, for example, can no longer build new showrooms in line with the company’s current design specifications for less than €12 to €14 million. In some cases, the cost of new branches can climb to €20 to €30 million. These figures reflect not only digital upgrades but also the cost of high-end architecture and interior design.
Premium Brand Architecture No Longer a Priority
Such demands are difficult to meet in the current economic climate. Many dealerships are already under pressure due to slowing car sales, and the expectation to invest millions in showroom upgrades is proving unrealistic for many. The era of high-priced brand architecture may be out of step with the financial realities of today’s automotive market.
The cost of meeting brand expectations goes well beyond basic construction. Dealers are required to install large video walls, interactive touchscreen displays, digital configurators, and advanced signage systems – all of which add significant expense. With margins under strain, many retailers are delaying digital upgrades, extending the use of existing signage systems, and scaling back on new installations.
Signs of Slow-Down in Orders
Despite the growing importance of digital experiences, there is a notable slowdown in investment. Suppliers and integrators in the digital signage industry are tight-lipped about current projects with automakers. Behind the scenes, however, there is growing concern about the lack of new orders.
Electric vehicle startups from Asia, which once planned ambitious showroom expansions across European cities, have paused or canceled their plans. Even well-established manufacturers from Europe, East Asia, and North America are holding back on showroom investments – a trend that also affects spending on digital signage.
In an industry traditionally driven by innovation and presentation, the high costs associated with modern retail concepts are proving hard to justify. As economic conditions remain uncertain, dealers and manufacturers alike are rethinking the scale and pace of their investments in digital and physical showroom infrastructure.
