The century long dominance of the internal combustion engine is being challenged by electric vehicles. The way customers interact within the vehicle retail experience is being impacted by the increasing power of online transactions. And even the way motor vehicles are controlled is subject increasing technological intervention and talk of eventual total automation.

At the root of all this change is the application of high technology combined with changing demographics.

Although electric vehicles have been about for decades, it is only recently, as better battery technology has met increasingly urbanised, wealthy and environmentally minded demand, that electric cars have begun to build market momentum.

In developed markets the future of electric motoring will be influenced by increasing urbanisation, resulting in shorter distances travelled and the ability to ‘piggy-back’ on existing power delivery infrastructures.

Manufacturers are rolling-out full EV and plug-in hybrid ranges. For Mercedes-Benz the first full EV is the 2020 Wheels Car of The Year, the Mercedes-Benz EQC. With the brand also promising plug-in hybrid versions of each major model range.

Along the Australian east coast, LSH Auto’s Mercedes-Benz Melbourne, Mercedes-Benz Sydney and Mercedes-Benz Brisbane are appointed agents for the EQC SUV ; leading the way in presenting and supporting premium EV motoring to those looking to be at the cutting edge of modern mobility.

Ultimately, bearing in mind the hundreds of millions of vehicles already in the global fleet, the look of motoring in 20 to 30 years will be one of a majority of some form of electrified drive-train, be that EV or plug-in hybrid. Internal combustion only vehicles will most likely be assigned to niche and specialist tasks.

The second revolution, that in automotive retailing, is likely to have a faster impact on the way many people will acquire or use motor vehicles.

Where the motor vehicle is seen largely as a convenience and/or a business tool - the space in which there is little emotional engagement - opportunities for digital disruption of the traditional dealer model may be realised.

However, in the premium space the purchase of a motor vehicle has a considerable emotional element. For such purchases consumer behaviour shows that more, rather than less, quality interaction is required. Premium customers seek exceptional experiences.

That is why premium retailers, such as LSH Auto, continue to invest in innovative dealership facilities. Even in the creation of destination locations, such as the recently opened LSH Lifestyle Centre in Brisbane. A building that integrates the new home of Mercedes-Benz Brisbane with premium lifestyle experiences and services; offering premium food and beverage outlets, personal care and business facilities and 5-star hotel-like concierge services.

The third and most futuristic revolution – autonomous vehicles, will be here both sooner and much later than most imagine.

Sooner in limited use, closed and controlled environments, and much later in open, mixed traffic.

Current active safety features and control systems, such as active cruise control and lane keeping assistance, are known as level 2 automation. They require the driver to remain in control of the vehicle. Level 3 allows the vehicle to effectively drive itself (with driver alerts when required) in limited circumstances, such as on freeways and in traffic jam conditions. Level 4 requires limited driver intervention and level 5 requires no driver at all.

The in-vehicle technology for level 3 autonomy is already appearing in premium vehicles but the road regulations to allow its full use still lags. Level 4 and 5 autonomous vehicles are likely to be quite some time away.

Not only is the challenge of managing vehicle to vehicle and other road user interaction significant but the issue of acceptable risk during autonomous operation remains unresolved.

In recent comments the Mercedes-Benz Board Member for Research and Development, Markus Schafer, outlined the challenges; "If it’s an urban environment it (autonomy) would be limited routes. Free-floating routes in all areas, that’s not very near.

The question is; is 99 per cent certainty enough? 99.9? ...It’s really all about the last percentile in safety, it has to prove to be better than a human driver.... to imitate what a human being is capable of is a huge undertaking.”

Vehicle autonomy to arrive sooner will be use in closed environments such as car parks. In the not too distant future you will be able to drop your car at the gates of the car park and it will proceed, without you, to an available space. Test facilities with such capability already exist and most drivers will have no hesitation in adapting to such functionality.

In summary, when adjusting to new circumstances and adopting new technology, the automotive industry is like any other. Some changes will be profound and rapid others will be gradual. In some cases the changes may even go in the opposite direction to majority expectation.

At LSH Auto we keep a close eye on developments and will evolve our businesses in ways that account for the dynamism of the industry and continue to deliver a customer experience that stays true to our promise of; You Come First. Always.