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Porsche, Lamborghini, Rolls-Royce: Automotive Brands Leading Blockchain Innovation
When luxury is a pillar Porsche entered the non-fungible token (NFT) space last year, the reaction that followed was a wake-up call for the automotive industry.
The failure of Porsche, a brand celebrated for its high-performance vehicles, was said to be caused by the project’s unreasonably high prices and poor communication, and demonstrated that even the most solid reputation in the physical world can crumble in the digital one.
“They’ve become too reliant on the brand,” Katerina Ali, founder and CEO of Immersifi, a digital loyalty program company, tells Jing Daily.
Porsche’s blunder was perhaps a blessing in disguise. In the wake of the widely documented incident, brands have been revising their NFT roadmaps to maximize value and customer satisfaction.
Cars and NFTs are an arena that remains remarkably unexplored. However, it is a market ripe for promising growth. According to Allied Market ResearchThe automotive blockchain industry is expected to reach $5.61 billion by 2030, as advances in blockchain technology, increased investment, government support, and startup innovation drive its expansion.
Luxury car brands leverage NFTs for community building. Image: Lamborghini
Collectible culture is playing a major role in driving the adoption of NFTs, with brands leveraging the allure of physical rarities to engage car enthusiasts on the blockchain.
Bugatti activation is an example of an NFT collectible done right. Last year, the high-performance manufacturer teamed up with British brand Asprey’s Web3 arm, Asprey Studio, for a super exclusive launch of 111 object eggseach made with 1,500 pavé diamonds and carbon fiber. Minted on the Bitcoin blockchain, the eggs were priced between $20,000 and $50,000.
Along with the egg and its accompanying NFT, the owners were also gifted a gold Asprey signet ring as a precious badge of honor.
“We chose the ring to make our audience feel part of the club. It’s not just for pinball, it’s for people who love to collect,” Ali Walker, Chief Creative Officer at Asprey Studio said Jing Daily last year.
The project was designed with both experienced car collectors and Bugatti’s active fan base in mind, Walker says. It has also opened up new revenue streams for the brand.
Prior to the launch of the objet egg, Bugatti and Asprey initially released 261 sterling silver sculptures of Bugatti’s Voiture Noire in 2022, which sold out instantly. A larger, one-of-a-kind sculpture later sold in a live auction hosted by Phillips Auction House for 378,000 British pounds (approximately $488,304).
While Bugatti has set the bar for prestige and exclusivity, non-premium brands have also found success with more accessible NFT artifacts. Renault, for example, released 960 pairs of exclusively designed NFT-connected sneakers under its Web3 division “R3nlt” in May 2023. Inspired by the brand’s flagship R5 turbo model, the sneakers were available for purchase for 265 euros (about $288.52).
As the collectibles market heats up, Immersifi’s Ali warns that while attention on NFTs has died down a bit, expectations are higher than ever (as Porsche’s symbolic misstep demonstrates).
“We’ve moved past the era of just collecting. Attention spans are getting shorter, and future generations want more value,” he says. “It’s not just about a great brand; today, it’s about what I get out of it.”
While NFT activations have not generated as much buzz as they once did, the waning enthusiasm has not deterred big players like Mercedes-Benz, who are continuing their activations.
The company’s Web3 division, called NXT, has been releasing token-based drops regularly since its inception in May last year.
Experiential value plays a key role in Mercedes-Benz’s NFT initiative. Last month, the brand handed out digital car passports to attendees of its Nürburgring 24-hour race event. Guests could access detailed information about the different models via QR codes, including Mercedes-Benz Classic, Mercedes-AMG, and Mercedes-AMG Motorsport vehicles, all stored on the private consortium Aura Blockchain.
Fans could also collect several unique souvenirs like wallet cards as a memento of the event. Marketing strategist and Metaverse Fashion Council board member Sara Noggler believes that providing audiences with POAPs (proof of attendance protocols or digital souvenirs) can open up direct lines of communication for long-term engagement.
“For example, owning a digital collectible from a particular car brand could grant access to VIP automotive events, early bookings of new models, or exclusive products,” Noggler adds.
Even classic car manufacturers are turning to blockchain as a way to preserve their heritage. Lamborghini has distributed NFTs not only to engage the next generation of car enthusiasts, but also to tell the story of its brand in a medium that aligns with their digitally native behaviors.
British car manufacturer Rolls-Royce has also leveraged blockchain to maintain its cultural relevance. The brand launched a series of NFTs dedicated to its iconic Phantom model early last year in collaboration with artist Sacha Jafri. The proceeds from the project, which surpassed the initial goal of $1 million, were later donated to charity.
But beyond community building and experiential benefits, can NFTs offer more practical use cases?
Ali points out that as consumers become more demanding, brands can use digital tokens to modernize their strategies and solve existing problems.
“Get rid of the logs and have the history of the car stored on the NFT,” Ali adds. “Blockchain doesn’t allow for modifications, so you can no longer reduce the speedometers or say you’ve had it serviced regularly.”
Strategist Noggler agrees, noting that legacy brands should approach blockchain as a repository. “Tokens could include detailed vehicle histories, such as maintenance records, previous ownership, and unique features,” she says.
Companies are listening to consumer demand. Alfa Romeo’s Tonale models now come with their own digital certificate that provides a record of the vehicle’s lifespan, including purchase and major maintenance details.
While NFTs have come a long way since their early development, Ali notes that the technology is still in its infancy and requires a lot of trial and error. To pull off a successful activation, brands need to find that sweet spot where their legacy, brand identity, quality, and experience blend together.
They also have to be willing to take calculated risks to move the needle forward, even if it doesn’t land like Porsche. “Some designs have worked better than others,” Ali adds, “but that’s all part of new technology.”