New Business Models and Perceptions Drive the Dynamics in the Indian Automotive Ecosystem

New Business Models and Perceptions Drive the Dynamics in the Indian Automotive Ecosystem

Transformational Growth in Pre-owned Vehicle Sales Until 2025

RELEASE DATE
01-Feb-2021
REGION
South Asia, Middle East & North Africa
Research Code: PB98-01-00-00-00
SKU: AU02130-SA-MT_25224
$4,950.00
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$4,950.00
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Description

The COVID-19 outbreak has had a significant impact on all industries per se. Businesses disrupted by the pandemic are looking at revival and grappling with the new normal. The automotive industry is no exception. Mobility and mobility-related solutions lie hampered not just in India but across the word, with the last few months witnessing plunging sales, halting of new purchases, and closing up of many car dealerships.

One of the top results of the pandemic-induced shift in perception and consumer behavior is the aversion to using public transport or other shared mobility services. With the economy getting back on its feet, it is essential to know what the new normal will be, in terms of understanding vehicle purchase behavior and the shift in mobility preferences.

Frost & Sullivan’s ‘New Business Models and Perceptions Drive the Dynamics in the Indian Automotive Ecosystem’ aims to understand these changes. More than 350 two-wheeler and four-wheeler owners and prospective buyers from various age groups and from both metro and non-metro cities were interviewed, and their responses analyzed.

The study presents insights into pre- and post-COVID-19 vehicle purchase preference and the rationale behind the change in preference—customer expectations, future intent, and the considerations that go into the purchase decision—demographic and behavioral characteristics of consumers, to determine willingness to change purchase behavior, the influence of online/digital retail and the emergence of new mobility business models, such as subscription services/leasing and so on.

Some key findings of our survey show that there is a significant shift from public/shared transport to personal transportation. The biggest shift can be witnessed within the younger age group—18 to 25 and 26 to 35—respondents that are looking for post-COVID-19 transport options. Respondents across age groups come down hard on shared mobility, with 56% of respondents apprehensive about hygiene and the lack of social distancing. As for the purchase of a new vehicle, 84% of respondents prefer buying a new vehicle, be it a 2W or a 4W, with 40% of them planning to purchase a new vehicle by the end of the year.

Author: Vijay Narayanan Natarajan

Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

Growth Opportunities Fuel the Growth Pipeline Engine™

Scope of Analysis

Study Framework

Customer Profiling

Key Findings—Pre- and Post-COVID-19 Vehicle Purchase Preferences and Customer Behavior in India

Key Findings—On-demand Mobility to Drive Sales of Electric 2WS in India

Key Findings—Affordability Drives Use of Pre-owned cars in In-vehicle Subscription Programs

Primary Pre-pandemic Mode of Commute/Transport

Post-pandemic Preference for Commute/Transport

Primary Pre-pandemic Mode of Commute/Transport by Vehicle Ownership

Post-pandemic Preference for Commute/Transport by Vehicle Ownership

Future Intent to Purchase a Vehicle

Type of Vehicle Most Likely to Purchase

Key Reasons for Purchasing Used Vehicle

Key Reasons for Purchasing Used Vehicle (continued)

Key Reasons for Purchasing Used Vehicle (continued)

Budget Allocation for New Vehicle Purchase After COVID-19

Budget Allocation for New Vehicle Purchase After COVID-19 (continued)

Budget Allocation for New Vehicle Purchase After COVID-19 (continued)

Preferred Type of Ownership of New Vehicle

Vehicle Subscription Offerings from Vehicle Manufacturers

Vehicle Subscription Offerings from Vehicle Manufacturers (continued)

Finance Consideration for Purchase of a Vehicle

Pre-purchase Research for Vehicles After COVID-19

Pre-purchase Research for Vehicles After COVID-19 (continued)

Intent to Purchase Vehicle Online

Key Reasons for Considering an Online Vehicle Purchase

Key Reasons for Considering an Online Vehicle Purchase (continued)

Key Reasons for Considering an Online Vehicle Purchase (continued)

Key Reasons for Not Being Interested in an Online Vehicle Purchase

Key Reasons for Not Being Interested in an Online Vehicle Purchase (continued)

Key Reasons for Not Being Interested in an Online Vehicle Purchase (continued)

Shared Mobility Consideration in the Next 6 Months

Key Reasons for Considering Shared Mobility in the Next 6 Months

Key Reasons for Considering Shared Mobility in the Next 6 Months (continued)

Key Reasons for Considering Shared Mobility in the Next 6 Months (continued)

Reasons for Not Considering Shared Mobility in the Next 6 Months

Reasons for Not Considering Shared Mobility in the Next 6 Months (continued)

Reasons for Not Considering Shared Mobility in the Next 6 Months (continued)

Likelihood of Personal Vehicle Usage After COVID-19

Likelihood of Personal Vehicle Usage After COVID-19 (continued)

Market Pulse

Market Pulse (continued)

Market Pulse (continued)

Market Pulse (continued)

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

Legal Disclaimer

Related Research
The COVID-19 outbreak has had a significant impact on all industries per se. Businesses disrupted by the pandemic are looking at revival and grappling with the new normal. The automotive industry is no exception. Mobility and mobility-related solutions lie hampered not just in India but across the word, with the last few months witnessing plunging sales, halting of new purchases, and closing up of many car dealerships. One of the top results of the pandemic-induced shift in perception and consumer behavior is the aversion to using public transport or other shared mobility services. With the economy getting back on its feet, it is essential to know what the new normal will be, in terms of understanding vehicle purchase behavior and the shift in mobility preferences. Frost & Sullivans ‘New Business Models and Perceptions Drive the Dynamics in the Indian Automotive Ecosystem aims to understand these changes. More than 350 two-wheeler and four-wheeler owners and prospective buyers from various age groups and from both metro and non-metro cities were interviewed, and their responses analyzed. The study presents insights into pre- and post-COVID-19 vehicle purchase preference and the rationale behind the change in preference—customer expectations, future intent, and the considerations that go into the purchase decision—demographic and behavioral characteristics of consumers, to determine willingness to change purchase behavior, the influence of online/digital retail and the emergence of new mobility business models, such as subscription services/leasing and so on. Some key findings of our survey show that there is a significant shift from public/shared transport to personal transportation. The biggest shift can be witnessed within the younger age group—18 to 25 and 26 to 35—respondents that are looking for post-COVID-19 transport options. Respondents across age groups come down hard on shared mobility, with 56% of respondents apprehensive about hygiene and the lack of social distancing. As for the purchase of a new vehicle, 84% of respondents prefer buying a new vehicle, be it a 2W or a 4W, with 40% of them planning to purchase a new vehicle by the end of the year. Author: Vijay Narayanan Natarajan
More Information
No Index No
Podcast No
Author Vijay Narayanan Natarajan
Industries Automotive
WIP Number PB98-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9967-A6,9AF6-A6