The Rise of NFTs In The Car Industry
The rise of NFTs in the car industry isn’t surprising by any standard. NFTs have allowed car brands to engage with their customers in new and innovative ways. By offering NFT collections and using them to create exclusive online communities or experiences, car brands have created a sense of community and exclusivity for their customers, which can be a valuable selling point.
This article looks at the rise of NFTs in the car industry and how big names are breaking into the space. We’ll also analyze some of the strategies used by top companies and their overall influence in the industry. Whether you’re a small business or a big brand looking to integrate NFTs into your business, you can draw an idea or two from these car brands’ strategies.
Table of Content
#1 - NFTs in the Car Industry: How Big Brands Are Doing It
#6 - Why Are Car Companies Embracing NFTs and Web3?
#7 - Our Thoughts
NFTs in the Car Industry: How Big Brands Are Doing It
NFTs and Web3 are concepts taking traditional sectors by storm, and the car industry is no exception. From car brands launching their NFT collection to crypto firms sponsoring Formula 1 cars, there’s nowhere you turn to without seeing them.
Here are the top car brands that launched NFT collections in the past year and how they performed.
McLaren
McLaren was one of the first car brands to enter the metaverse with its NFT collection back in May 2022. The first chapter of its metaverse strategy saw it partner with Infinite Worlds to launch a limited edition collection called MSO Lab Genesis. The digital collectibles include 2012 unique items inspired by the McLaren P1™ and P1™ GTR supercars.
The collection didn’t really favor the ETH maxis looking for long term profit—the floor price has dropped 71% from its 0.5ETH mint price. But one thing we know about brand-owned collections is that they’re mostly geared towards improving customer experience than making profits.
So what benefits did McLaren provide to its holders?
Exclusive event tickets airdrop
Virtual tour of the Mclaren HQ
Airdrop of digital sketches illustrating the collection’s design process
Early access to future collections and drops.
Porsche
Porsche is one big car brand bringing something more unique to the space. We covered some information about the Porsche NFT collection in our 2022 review article. The collection still hasn’t launched but there’s much hype around the drop.
But it's not the marketing that fascinates us most; it’s the utility. Porsche plans to introduce the concept of co-creation into the space. This will allow its NFT holders take part in the creation process of their NFT, allowing them to make rare and unique traits for their virtual cars.
While it is too early to forecast the outcome of the launch, we’re confident that this new utility class will become a mainstay in the industry.
BMW
Another notable car brand testing the NFT waters is BMW. We also covered quite a lot about BMW’s plans in our Web3 in 2023 article so we won’t go into much detail here. But here’s the latest stuff. BMW finally unveiled its plans and geared toward making your cars more personal.
Like Porsche, BMW is introducing practical use cases powered by NFTs and Web3 technology. The car brand is leveraging Web3 technology to build a smart car that connects with its driver on an emotional level while being a gateway to virtual worlds. In other words, you can be in your car and enjoy breathtaking metaverse experiences, check your social media feeds, or simply start a conversation with your car.
Aston Martin
Aston Martin’s latest NFT launch isn’t what we’re particularly bullish about but its worth mentioning. The automobile giant launched its NFT Vantage Series in December 2023 with plans of integrating the digital collectibles into a racing metaverse set to launch early this year. More details in our Web3 in 2023 review article.
While the move is commendable, the idea is something we’ve seen quite a lot in the space. Bored Ape is doing it, Jadu Avas also planned something similar, though from an AR angle—the list is endless.
But let’s see how the community reacts to Aston Martin’s plans after the game launch.
Why Are Car Companies Embracing NFTs and Web3?
It is quite obvious. NFTs are disrupting consumer behaviors in a way we’ve never experienced since the introduction of the internet. This pivotal change has prompted the need for businesses to change their customer relationship strategies to meet with modern demands.
But customer experience isn’t the only reason spearheading the rise of NFTs in the car industry—profit making is another angle. If NFTs are known for one thing is that they offer a new funding and monetization structure for individuals and businesses. This is why lots of Formula 1 teams now have crypto and NFT sponsors—although, that sector has been experiencing hard times.
Nonetheless, with NFTs, car brands can provide more value to their customers while expanding their income sources with monetized loyalty programs and airdrops.
Our Thoughts
NFTs have immeasurable creative potential. The use of NFTs by automakers allows them to connect with their customers in a unique way by offering exclusive, high-priced products. NFTs can be very lucrative for businesses, but if automakers bring more innovative ideas and incorporate them into their projects, the value of NFTs will increase even more.
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