"eCommerce waves lure the Indian Automotive Industry"

As per industry pundits, the electronic commerce will give enormous impacts in most industry sectors, predicting momentous changes in the entire world of eCommerce as we know it today.
“eCommerce waves lure the Indian Automotive Industry”
As per industry pundits, the electronic commerce will give enormous impacts in most industry sectors, predicting momentous changes in the entire world of eCommerce as we know it today. 
As per a study, Indian retail eCommerce industry is expected to scale by 45 per cent to $20 billion by this year. In the last one year, India has nabbed a total sale of $5.3 billion just in eCommerce retail. Electronic commerce is getting ubiquitous in India now. From books to electronics and apparels to groceries, the niche markets have taken the country with a storm.
Welcome to e-Commerce!
In this eCommerce league, every sector has gained momentum in one way or the other. And now, is the time for automobile industry to take the shots. Supporting the above statement, many auto companies in India have banged their eyes on omni-channel strategy to help market and uplift sales. Not only cars and bikes, but heavy vehicles, bi-cycles and even planes and helicopters will be sold via a number of channels, largely it will be dealer network, flagship stores as well as through online and mobile channels. Looking at the past one decade 4,500 cars were sold online. 
India - A low trust market
Automobile industry in India in terms of purchase of cars and bikes has been a low trust market. Not only buying and selling is a concern, but other automobile services such as vehicle loans, insurance, servicing, exchange offers etc. are some other hindrances in the growth of this sector as well.  Checking these challenges, many online eCommerce and classified portals have come up in order to solve these fundamental problems. 
Speaking on the same Rishab Malik, Co-Founder, Droom.in said, "Basic challenge is just around non-familiarity of the models. Indian consumers did not even know that such platforms even exist. Awareness and a bit of trust factors create hindrance for us." Droom is India's first online marketplace for the automobile industry. 
Though many classified portals such as OLX, Quickr and other aggregators such as CarTrade, Carwale, Cardekho etc. are doing quite well in this space and people have become familiar with such models.
He also said, "These players have done a good job in at least familiarising the consumers that there is some activity in the online space, but still the challenge lies in bending these customers towards a transactional model." Despite such challenges, these players both from classifieds and transaction space are doing their best to educate the customer and win their trust.
Consumer Behaviour 
Few years ago, consumers treated Internet as a tool to research vehicle types and features. Having made the decision about the make and model of the vehicle, typically these consumers then went about transacting the rest of their car purchase in the more traditional manner. A complete sale over the Internet was happening at a very squat speed and so were the automobile services such as insurance, finance additional warranty etc. 
But the waves are changing and consumers are open to try new technologies and mobile apps for automobile too. The economy growth and increase in need of mobility are some of the other factors why this space will boom.
Future of online automobile
Many private investors and venture capital firms are eager to invest heavily in online automobile space as they see India as the fastest growing economy. Highway infrastructure, growing standard of living, need for speed, these are some factors which will drive the industry in the coming future. "Automobile overall in India is a $100 billion industry and so the opportunities are incredible and endless. Bringing this huge market online gives an immense scope in terms of growth,"said Malik.
In the online ecosystem, the growth of lead generation channels for automotive sales has been quite significant. There was a time when classified were primarily based in print but since a decade classified have jumped online for advertising used cars. Classified side of the business has opened gates for transactional model in automobile industry and with rising influence among the mass, soon we are going to see a giant eCommerce player such as Jabong or Snapdeal for AUTOMOBILE!
Publish Date
Not Sponsored
Live: People Reading Now
 
 
 
 
TRENDING ARTICLE
RECOMMENDED FOR YOU