Auto sale in India: 89% are digitally influenced, says Google – Kantar report

As many as 89% auto sale in India are influenced by digital, claimed a report from search giant Google and research firm Kantar

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M Kalam
M Kalam
M Kalam covers technology and e-goverance for TechObserver.in.

As many as 89% auto sale in India are influenced by digital, claimed a report from search giant Google and research firm Kantar. The report titled “The Drive to Decide” states that in 2017, 89% of Indian car purchases are digitally influenced, up from 75% in 2016. These auto shoppers exhibited three key digital behaviours: 96% of them are searching online, 80% are watching online and 88% of them prefer to research on their smartphones.

Elaborating on the influence of digital on the path to purchase, the report shows in the last two years, there has been a 2.5x increase in consumers who are taking only two months to buy a four-wheeler. Concurrently, the number of dealer visits have also dropped by 50% in the last three years. Finally, two-thirds of digitally influenced buyers are searching and discovering dealers online. Together, all of these are leading to shorter, more efficient buying cycles.

As per the report, online video is fast becoming a preferred information source that is allowing buyers to explore a new car from different perspectives. The percentage of online video usage in the process of buying a car in 2017 has nearly doubled, to 80% from 43% in 2016. Breaking up the types of videos consumers are watching; the report shows that 41% are vehicle safety tests; 41% showcase the technology and features of the car; 38% are on performance and 33% of them are customer reviews. Further, the report highlights that 79% of consumers who are watching online video are taking an action – underscoring the important role of online video in the decision-making process.

“Online video has emerged as the biggest disrupter for the four-wheeler industry in India. YouTube has over 225 million Indian smartphone users watching online video every month, auto content itself has witnessed an astounding 225% year-on-year watchtime growth. From an advertiser perspective, what makes this trend even more relevant is that car manufacturers can now measure the exact impact that online is having on offline sales, and we believe that is a real game changer,” said Vikas Agnihotri, Industry Director, Google India.

Speaking about the challenges that marketers face and some future trends, Gabri Herrmann, TNS said, “The modern auto shopper walks into the dealership armed with a staggering array of information. Delivering on research needs and inspiring the consumer is critical — brands that succeed in this will win the sale!”.

Kantar TNS research covers over 500 respondents in 27 markets (overall 13828 respondents in 27 markets) via online or face-to-face with an average survey length of 15 minutes, said company.

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