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Indians are one step away from buying cars online

Jan 30, 2019, 15:15 IST
Audi showroom in Banjara Hills, HyderabadWikimedia

  • India, as the fourth largest automobile market in the world, may be due for a digital shift since most of its consumers are going online for their research.
  • The ‘Drive to Decide 2018’ report by Google and Kantar TNS indicates that 90% of car purchases are digitally driven.
  • Brands are increasing their online presence in order to make most of the opportunity.
Adding a car to your cart may be the next step in online shopping according to the ‘The Drive to Decide 2018’ report by Google and Kantar TNS. Consumers in India already do most of their research online — checking in with brand websites and looking at reviews — that 90% of car purchases are digitally driven.
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It’s not only about being online but also about being a country that’s so obsessed with YouTube that we use it like Google Search.


Since people are doing their due-diligence before buying a car, they are also more loyal consumers. According to the report, since consumers are more certain about their choice, instance of them switching between brands has declines by 4% over the last two years from 11% in 2016 to 7% in 2018.

Here’s why India is poised to be the next online market for cars

India’s already the 4th largest auto industry in the world, according to the India Brand Equity Foundation. Most of the demand for cars is coming from the rising middle class and the young population of India.
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These are also the people who are a part of India’s massive growth in online users.

So brands are beginning to pivot their strategies to cater to prospective buyers. Automobile manufacturers are increasing their online presence in order to be a part of the consumers online journey.

“From just searching for manufacturers and dealers online, buyers today are actively looking for videos to answer their questions around car features to reviews to vehicle performance and more. Consequently, the focus for auto manufacturers has also moved to creating more immersive experiences that allow them to drive this action.”

Vikas Agnihotri, Country Director - Sales, Google

It doesn’t matter whether its the automobile industry or not, the number of Indian users online as increased dramatically since Jio started offering cheap access to internet and affordable phones. Last year Rajan Anandan, the vice president for India and South East Asia at Google, disclosed that India is adding nearly 10 million daily active internet users every month.

He added that video watch time has seen a 400% year-on-year growth in the country.

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These findings were based on research conducted by Kantar TNS. The research covers 4,000 respondents in India engaged via online or face-to-face interviews with an average length of 25 minutes for telephone interviews and 30+ mins for face-to-face interviews.

See also:
Here’s how young India is buying cars

In India, used car businesses see renewed interest from investors with CarDekho raising $110 million

Can latecomer Maruti Suzuki rev up electric car sales in India?
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