The Indian Automobile Industry

Trends

• In 2019 India sold over 21 billion passenger cars making it the second fastest growing automobile market in the world.
• India's passenger car segment is among the largest and fastest growing in the world.
• The Indian Auto Expo 2020 witnessed the largest overseas participation of auto brands across countries and a turnout of millions' people.
• This indicates a phenomenal increase in consumer demand as well as rise in the number of players entering the Indian market.

The Indian Internet User

Internet Usage in India

• 564.5 million are active internet users in India
  • Active internet users are those users who have accessed it at least once in a month
• 87% of these are regular users and 100% are daily users
• 70% of all internet users belong to an online community
• 1 out of 4 users access internet on their mobile devices

Profile of Indian Internet Users

• Over half of internet users are 'employed', half of whom are 'corporate employees'
• '25-35 years' forms the 'single' largest age group among internet users
• Their 'average' claimed monthly family income is '3 times' the national average of at least 2 times higher ownership levels for the more 'evolved' modern day assets

Indian Internet Users Online Buying Behavior

• Online buyers base has grown tremendously to 330 million
• 40% online shoppers 'bought' online (+18% points over last year) - indicates that mere 'window shoppers' are giving way to the 'serious' buying - intending shoppers online
• 3/4th of internet users have 'responded' to some kind of 'marketing stimulus' when online

Online Automobile Market

Indian Car Brands Online

• Online buyers base has grown tremendously to 330 million
• 40% online shoppers 'bought' online (+18% points over last year) - indicates that mere 'window shoppers' are giving way to the 'serious' buying - intending shoppers online
• 3/4th of internet users have 'responded' to some kind of 'marketing stimulus' when online

• Maruti claims to have sold over 1,00,000 cars originating from digital executions last year.
• Tata Motors' website received million hits and generated large no. of customer bookings online.
• It is also claimed that internet is responsible for driving over 25% of Honda's total sales in India.
• Pegged at Rs. 61,878 crore ($8.76 billion) in 2018, the Indian advertising market is estimated to grow with a CAGR of 10.62 per cent till 2021, to reach a market size of Rs. 85,250 crore ($12.06 billion)... This year, digital advertising will cross the $2 billion mark in India, in actual money spent by clients.

Indian Car Buyers Online Behavior

• 72% of customers intending to purchase a car prefer to use internet to gather relevant information about their choice.
  • Only 44% rely on dealers for information
  • 25% rely on both internet and dealers
  • Only 52% rely on Magazines (Print) and a mere 26% rely on TV.
• Customers intending to purchase a car rely heavily on internet for Vehicle Specification, Safety Features and Brand Image over other offline sources
• 62% of customers indicated they have shared an auto related experience/opinion online.
  • 54% of these shared a positive experience
• 53% of customers use social forums to communicate experiences and opinions
  • 83% indicated that they were likely to use an online automotive community to find and share car related news

Inside the Mind of the 'Wired' Car Buyer
- Webchutney