'The findings of the Indian Automotive Consumer Canvas (IACC) IACC 2022 are very much in line with what our dealer network, and close consumers have told us,' said Shashank Srivastava, Senior Executive Director, Maruti Suzuki India.
Responding to the findings of IACC 2022 revealed yesterday at a webinar virtual panel discussion led by him, along with CS Vigneshwar, Secretary, FADA, Sumit Bali, Group Executive & Head – Retail Lending & Payments, Axis Bank, Kaushik Madhavan, Independent Consultant, Frost & Sullivan, Banwari Lal Sharma, CEO – Consumer Business, CarTrade Tech and moderated by Deepangshu Dev Sarmah, Editor, Mobility Outlook, Srivastava said, the process of digitisation cannot be reversed in car buying. 'We have come from 3% enquiries to 40% enquiries in three to four years. Only touch and feel, test-drive and car delivery cannot be digitised.'
IACC had garnered over 202000 responses in about two weeks during the first year, and in the current edition, it has recorded 2.56 lakh responses within eight days from people located across Tier-1, Tier-2 and Tier-3 cities in the country.
Individuals falling in the age groups ranging from 18 to 56 participated in the survey, with 43% of respondents in the 18-25 years age group showing the potential for new business models as respondents in this age group are less inclined towards traditional models of purchase & ownership of vehicles.
Key Findings
- About 35% of the respondents indicate a willingness to purchase a two-wheeler EV as their next vehicle.
- The need for 2Ws has increased significantly as 76% for 2W and 69% for 4W are thinking to buy a vehicle this year.
- An increase in people postponing their purchase decision shows that the financial impact of COVID19 is long-lasting, and recovery will take time.
- Preference to explore Leasing / Pre-Owned / Subscription models is quite positive at 26%.
- 71% of the respondents voted for a reduction in the budget of at least 10%, with 18% reducing the budget by over 30%.
- 28% of the respondents chose hatchback and compact SUV as their preferred body type.
- 44% of the respondents cite lack of charging infrastructure and range anxiety as reasons for not buying EVs.
- Increased reliance on personal savings and liquidity, as 21% wished to buy a vehicle on personal savings.
'CarWale, CarTrade and BikeWale have been sitting on this data goldmine for 10-15 years. It is a pity this is just the second edition of the IACC. I think there is going to be an end-to-end model. Online and offline will merge in such a beautiful way that people will not even realise whether they are buying vehicles online or offline. The duo will evolve into one channel,' explained Banwari Lal Sharma, CEO, Carwale.
Responding to the findings that 76% of people willing to buy 2W, and 69% for 4W, this year, Sumit Bali, group executive & head, Retail Lendings & Payments, Axis Bank, said, 'We have clearly seen the consumer intent improve this year. When we look at the spending pattern of the consumer we can see that there is almost a kind of revenge buying which is happening. The confidence is good. The interest rates have remained low. I think the only limiting factor has been the supply of new vehicles.'
National banks have once again emerged as the choice in being the finance partners for consumers (57%) when it comes to getting a new vehicle financed. However, about 17% are open to getting their new vehicles financed via private institutions.
'Personal mobility has enhanced and it has become a priority because of the safety concerns. I have also noticed that there is increased interest in brick-and-mortar shops. All the findings of IACC 2022 point towards how the pre-owned vertical can play a major part in the growth of the automobile sector in India,' shared C S Vigneshwar, secretary, Federation of Indian Automotive Dealers Association.
Kaushik Madhvan, Independent Consultant, Frost & Sullivan, who comprehended the survey findings, said, 'The Indian automotive industry has witnessed some very positive moments over the past 12-24 months. People are back to work again, and the need for personal mobility is on the rise.'
Frost & Sullivan was also the validation partner of the IACC survey carried out at CarWale, CarTrade, Mobility Outlook and BikeWale portals.
Electric vehicle adoption in India, unlike in the west, is being driven by two-wheelers. IACC survey further cements this fact, thanks to 35% of IACC survey respondents who indicated a willingness to purchase a two-wheeler EV as their next vehicle. However, a lack of charging infrastructure and range anxiety remain the top barriers affecting EV adoption. Madhavan said EVs are becoming more mainstream today. The position of EVs is shifting from a fourth vehicle to a first for customers.