A global survey conducted by Capgemini Research Institute has revealed Indian consumers are most bullish about purchasing a car in 2020, second only to China.
With a sample size of 11,000 consumers across 11 countries representing 62 percent of global annual vehicle sales, the survey said about 57 percent of the consumer respondents from India are considering buying a car this year. The number is far higher than the global average of 35 percent in the survey and lower than only China's 61 percent. The research examined how automotive organisations can re-engage with consumers and reignite demand during COVID-19 and focused on key issues that are likely to shape the future of the automotive industry.
The findings of the survey, if they hold true in reality, will cheer automakers in India battling a protracted slowdown in the domestic industry that has now stretched to over 20 months.
The outbreak of the pandemic has only made matters worse with the industry registering zero sales for the first time in a month in April and the likelihood of a quick revival looking bleak due to fear of consumers flattened by the contraction in the overall economy, deferring purchases. "The findings unveil that (75 percent) of the global consumers who intend to make a purchase in 2020 said that it is because of ownership that gives them a greater control of hygiene," the survey said.
"It has been observed that 44 percent of the potential buyers are below the age group of 35 years. In this, India and China together constitute 36 percent of the under-35 potential buyers' group. Furthermore, in the under-35 potential buyers' group category, India (58 percent) ranked second highest after China (65 percent) in considering owning a car. Globally, it was observed at 45 percent."
Even after the crisis subsides, health and safety concerns will continue to shape consumer behaviour across the world including India. "Indian consumers want to minimise dealer visits and make more use of online channels. Compared to pre-COVID levels, consumers have made a significant shift to digital modes of interaction," it said.
The study highlights 70 percent of Indian consumer respondents prefer to avoid dealership visits to compare financing and deals. The global preference for this was much lower at 46 percent.