carandbike recently conducted a survey to observe the changing trends in the auto industry and market and figured that most buyers would go for a phygital approach visiting showrooms at least once before making final purchasing decision while doing rest of the work online.
The Coronavirus crisis has changed the way world is functioning. Most of us were bound to stay indoors for the longest time and step out only if it’s absolutely unavoidable. While we do realize that the crisis situation is not ending soon and we need to resume work with utmost precautions, the impetus is on avoiding unnecessary visits and and go digital. It’s something that we call the new normal and it is bound to change the entire purchasing experience which likely to get driven by online retail to an extent. That said, it’s still auto dealers who will be indulging in the entire process and customer visiting showrooms won’t stop completely with the process being more phygital, which is a combination of physical and digital buying experiences.
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carandbike recently conducted a survey to observe the changing trends in the auto industry and market and the key finding in respect to buyers experience suggest that 68 per cent of customers are still willing to visit showrooms and examine the product personally before making a final decision. Around 60 per cent will go for a phygital approach using digital platforms for all purchasing procedures while visiting the showroom at least once to check out the vehicle. In non-metro cities 50 per cent of the population still will strictly go for personal buying experience rather than digital.
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Test drives too are very important before a customer is making a purchasing decision as he/she gets the entire feel of the vehicle. In fact, around 30 per cent customers are willing to pay for test drives at their preferred location, while 70 per cent still want it to be a complementary service. The finding also show that 38 per cent of customers are ready to finalise the deal at the dealership in a single meeting while 41 per cent would not mind visiting showrooms multiple times before coming to a conclusion. 30 per cent of buyers would want the vehicle being sent home for test drives and not visit showrooms.
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Also do take note of the fact in any case it will be dealers and their personnel who will be dealing with the customers, be it when they visit showrooms like before, sending test drive vehicles to their home, resolving any issue, getting the procedure initiated and done at the ground level after they get the online lead or simply helping them over phone. Moreover, the process will remain phygital as finding also show that customers may partially use online platforms and also visit showrooms for other procedures. Around 18 per cent of customers prefer to just go for online bookings while 16 per cent would just want door-step delivery. 13 per cent would take a virtual tour of the vehicle online and 14 per cent would want to get done with all documentation work online. Just 1 per cent would like phone assistance and 38 per cent still won’t prefer online purchase at all.
Also Read: Personal Mobility The Way Forward For Consumers: carandbike Survey
Major automakers like Maruti Suzuki, Hyundai, Mahindra and Honda among others are already providing online services while taking all precautions to prevent the spread of the novel Coronavirus when customers visit showrooms. Customers will also need to book showroom visits and test drives online or over phone before visiting the dealership.
The carandbike survey was conducted in April 2020 in association with Brandscapes. The survey was conducted among more than 1,000 market customers of carandbike, and over 100 dealers of new and pre-owned vehicles. The survey covered respondents in the cities of Mumbai, Delhi, Chennai, Bengaluru, Pune, Kolkata, Hyderabad, Jaipur and Indore.