The automobile industry has hit a slump and it has since been a roller coaster ride for everyone who has anything to do with the industry.
The industry contributes 7.5% to the GDP, moreover, it's one of the biggest areas of employment in the nation. But the sudden slowdown has proven to be more than a threat to companies and has cost many people their livelihood, sources also say the decline is the sharpest in the last 18 years.
While the entire automobile segment is on the decline, we conducted a consumer journey mapping survey to find out what goes in the mind of a prospective buyer when he has already, once, thought about buying a new car. We wanted to get to the bottom of it and find out what are the other key factors that contribute to a prospect's decision making.
A lot of factors contribute to the decision making of a buyer viz. finance, availability, technology, etc. The purpose of this survey was to find out all the underlying factors that companies can look upon, again, as they plan their marketing calendar for 2020.
Attributes Preference Basis Tiers
Mileage, maintenance cost, and a brand image came out as top attributes across all the tiers. While many would debate that price and resale value play the biggest role in this type of transaction, our data begs to differ. They are the least important of all the 7 attributes. Mileage, maintenance cost, brand image, and after-sales support is what people want and can drastically affect their decision.
Fuel-Type Preference Across Income Groups
While higher-income groups are more likely to go for Petrol or Diesel options, people within the income bracket of 10- 30L per annum seem to be quite keen towards environment-friendly options.
Many brands already have and are launching electric vehicles, and as more and more people are warming up to the idea a surge in demand won't be surprising at all.
Top 10 Preferred Brand Models in Tier1 Cities:
- Maruti-Swift Dzire
- Maruti-Vitara Brezza
Media and automobile companies have been harping a lot on the economy being the reason people are holding off their purchase decisions. But is it the only reason people postponed their plans to buy a new vehicle? No, it's not.
Across 1016 people that we surveyed, 35% of people said they have postponed the decision to purchase a car for the next 6-24 months and economy isn't the only reason behind it. The graph below shows the breakup of reasons responsible for making people drop their plans for owning a vehicle shortly.
21% will not buy a car because they do not have enough parking space, 25% rather not be stuck in traffic and a cumulative 34% blamed it on GST and uncertain vehicle norms (is BS-VI the final deal?).
How big a deterrent is the economy as far as buying a new car is concerned for people already in the market in search of a particular ride? It's big but it won't stop people. 663 out of 1016 people will purchase in the next six months and they already know what they want.
Companies must research the market before they go on about making big fancy strategies that overlook their potential targets and their choices.
The purpose of this survey was to figure out what people have in mind before making a big decision, and if brands pay more attention to details, they might be able to turn their luck around.
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