Why Consumers Are Buying Automobiles Digitally (And Why Not)
In a recent study of automobile buyers, it has been uncovered that the consumers showed keen interest in the purchase of vehicles through digital platforms of retail. Over 60% of the surveyees were interested in buying a vehicle online.
CarWale recently released India's largest consumer survey - Indian Automotive Consumer Canvass (IACC) 2021 with the objective of understanding vehicle purchase behaviour and changing perceptions in the wake of COVID-19 in India. The survey results were released through a virtual panel discussion led by stalwarts of the industry.
This survey was conducted by CarWale and BikeWale in association with CEAT Tyres, IndusInd Bank and Frost & Sullivan.
Trust in vehicle manufacturers, Transparent purchase processes, Fear of hygiene at dealerships, Better deals and Convenience were some of the reasons why the users opted for the digital route of purchase. On the other hand, the biggest reason why the rest of the respondents refused to opt for this mode of buying is the lack of being able to experience the products in person.
The survey also found a rise in interest towards electric vehicles (EV) with an inclination to trying out owning new models and strong growth in interest in online purchases as well. Interest in EVs showed a sharp rise with 35% of the respondents reporting a willingness to go for an EV as their next vehicle. The rising demand is driven by better product options (55%), attractive technologies (39%), and affordability (31%). However, the lack of infrastructure seems to be the major stumbling block in its wider appeal. 50% of the respondents cited a lack of charging stations and the low number of product options as the main reasons for not buying an EV.
"We have demand on our side and the rest can be taken care of. One of the most heartening aspects of the survey is the revelation of 60 per cent of the respondents willing to go for online purchase," said Banwari Lal Sharma, CEO, CarWale and BikeWale.