The metaverse refers to a virtual realm where individuals can engage with one another and digital content by utilizing avatars, VR headsets, and similar devices. This concept has gained considerable traction in recent times, particularly with the success of games like Fortnite and Roblox, along with the emergence of platforms like Decentraland and Sandbox, enabling users to craft and explore their virtual environments.
Beyond being a playground for gamers and enthusiasts, the metaverse presents a promising market for businesses and brands keen on reaching new audiences, providing innovative services, and bolstering customer loyalty. Various industries, such as fashion, music, sports, and entertainment, have already embraced this virtual frontier. Now, two major Asian car manufacturers, Nissan and Toyota, have disclosed their intentions to venture into the metaverse.
Nissan’s Virtual Showroom:
Nissan has introduced a virtual reality version of its Nissan Crossing gallery situated in Tokyo’s upscale Ginza district. They’ve employed a platform from the U.S. startup VRChat for this endeavor.
Within this VR space, visitors can explore the recently unveiled Ariya electric vehicle, as well as attend vehicle launches and community events. Selected guests have the opportunity to embark on a virtual world tour of Nissan, immersing themselves in captivating sound and lighting effects.
Nissan has articulated on its website that their use of an invisible-to-visible augmented reality interface linking them to the metaverse opens up boundless possibilities for services and communication, promising more convenient, comfortable, and exciting driving experiences.
The company aspires to forge a “symbiotic” relationship between people, cars, and society by employing the metaverse as a platform for innovation.
Toyota’s Virtual Workspace:
Toyota has developed a metaverse-style virtual workspace for certain departments and subsidiaries, allowing employee avatars to navigate through an office environment, participate in meetings, and interact with colleagues. This virtual workplace is powered by Spatial, a New York-based startup specializing in collaborative platforms for remote work.
The parent company of Toyota is actively working on expanding this virtual workspace, focusing on technical development and human resources teams. A Toyota representative mentioned that these virtual workspaces have been created with young employees in mind, acknowledging their communication needs and the shift toward remote work culture following the COVID-19 pandemic and associated restrictions.
Implications for the Car Industry:
Nissan and Toyota are not alone in their exploration of the metaverse. Other car manufacturers like Volkswagen and Mercedes-Benz have also harnessed metaverse technology to showcase their products and engage with customers. For instance, Volkswagen has partnered with Roblox to create an interactive game called “Volkswagen ID.4 Adventure,” featuring its electric SUV model. Meanwhile, Mercedes-Benz has collaborated with Decentraland to craft a digital art installation called “No Limits,” celebrating its EQS electric sedan.
The metaverse holds several advantages for the automotive industry, including:
- Reaching New Customers: The metaverse can serve as a platform for attracting new customers who have an interest in digital experiences and innovation. Car manufacturers can leverage virtual showrooms, events, and games to present their products and services in an immersive and interactive manner. Additionally, they can tap into the metaverse’s social elements to build communities and foster loyalty among their fanbase.
- Cost Reduction: The metaverse can help carmakers reduce costs by eliminating the need for physical infrastructure and logistics. By creating virtual spaces, they can save on expenses related to rent, maintenance, staffing, and transportation. This approach also aligns with environmental sustainability goals by reducing resource consumption and energy usage.
- Enhanced Innovation: The metaverse offers a platform for car manufacturers to experiment with new ideas, gather feedback, and collaborate with partners. It serves as a sandbox where they can explore innovative designs, features, and technologies without real-world consequences. Observing user behavior and preferences within the metaverse can also inspire creativity and drive innovation.
Challenges Ahead:
While the metaverse holds promise for the automotive industry, it presents certain challenges, including:
- Regulation: The metaverse currently lacks clear regulations and standards, posing legal and ethical dilemmas for car manufacturers operating within it. Questions arise concerning the protection of intellectual property rights, data privacy, security, and compliance with various laws across different jurisdictions.
- Competition: The metaverse is highly competitive, attracting players from diverse industries. Car manufacturers must find ways to differentiate themselves and create unique, engaging experiences for their customers while keeping pace with ever-evolving metaverse trends and user expectations.
- Quality Assurance: Ensuring consistent and reliable experiences in the metaverse can be challenging due to its complexity and dynamism. Car manufacturers must maintain high-quality technology and content to meet customer expectations while addressing technical issues and glitches that may arise.
In Conclusion:
The metaverse represents a new frontier for the automotive industry, offering both opportunities and challenges. Nissan and Toyota are among the early adopters of metaverse technology, and they are likely to be followed by many others in the near future. The metaverse is set to transform how car manufacturers interact with customers, employees, and partners, as well as how they innovate and compete. Adapting to the metaverse’s new realities and leveraging its potential for value creation and growth will be key for the future of the car industry.