Generative AI (GenAI) is poised to transform the global automotive retail landscape, with more than 40–50 million car purchases annually expected to be influenced by AI-powered assistants by 2030, according to a new report.
The study, released by Boston Consulting Group (BCG) in collaboration with OpenAI, found that carmakers embracing GenAI could see their sales increase by up to 20% within the next five years. Conversely, companies that delay adoption may lose as much as 15% of revenues, as customers shift towards competitors providing more seamless AI-driven experiences.
The report, titled “Will AI Become the Best Car Sales Advisor?”, underlines how AI-powered tools will integrate into every step of the buyer journey. These systems are expected to serve as neutral, brand-independent advisors, assisting customers with vehicle configuration, financing comparisons, and test drive scheduling.
Natarajan Sankar, India Leader for Automotive and Industrial Goods Practice at BCG, said GenAI has the potential not only to boost sales but also to restore customer trust. “By making car buying more transparent, seamless, and personalised, GenAI can reshape the way customers interact with the industry,” he said.
Sankar added that in fast-growing markets such as Asia, the pace of adoption will be decisive in determining which automakers lead.
The report also suggests that GenAI could erode traditional brand loyalty, as customers begin focusing more on practical considerations such as electric vehicle range, pricing, and lifecycle emissions over brand image.
To remain competitive, the study recommends that automakers strengthen their presence on AI-powered platforms, collaborate with multi-brand marketplaces, and develop proprietary AI assistants capable of delivering hyper-personalized purchasing journeys.
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