Indian Automotive Industry in the E-Commerce era
The Indian ecommerce industry has grown by leaps and bounds in the last two years. Though online shopping has been in vogue since 2000, the ecommerce market has picked up traction only in the last two- three years. Since then, ecommerce has become ubiquitous in India. The ecommerce industry is not just limited to books, apparels, groceries, electronics, etc, but also includes services like financial services, healthcare and automotives.
India being the seventh largest producer of automobiles in the world, sold 2.6 million passenger cars and 3.0 million used cars in the financial year 2014-15.
Impact of technology on the consumers
Traditionally, consumers would use internet to research on the type of the vehicle and its features. They would visit the showroom, see the car, discuss the features, take a test drive, discuss the other services available such as insurance, exchange offer, finance options and after sales service with the dealer and then decide on the purchase. However, now the consumers have become more tech savvy and are using internet to research and make informed decision to purchase a new or a used vehicle. With the advent of Ecommerce market, the online review about the products is impacting the purchase decision of the consumers in a big way.
India is the fourth market in the world for automobiles. The huge potential in the automobile segment had got several start ups such as Cartrade, Carwale, Cardekho, Gaadi, Zigwheels, Droom, Gozoomo, CredR, Rent a car etc to come up with online auto classifieds, car insurance, used cars marketplaces, CRM for dealers, vehicle services, exchange offers and car rental services.
Online portals for auto classifieds and used cars are a big hit in the Indian market. Consumers rely heavily on these portals for taking decisions, as these portals provide more and better information.
Though the automobile ecommerce market in India is behind the US and the UK markets, it has made significant inroads in the Indian markets and is bound for an aggressive growth in the near future. The OEMs and the dealerships must invest on technology and encourage the consumers to experience the ease of online transactions.
Online entrances for auto classifieds and utilized autos are a major hit in the Indian business sector. Purchasers depend vigorously on these entries for taking choices, as these gateways give increasingly and better data the consumers to experience the ease of online transactions.
