According to latest Grant Thornton Bharat survey on consumer buying behaviour in the automotive sector, six out of 10 Indians wait for discounts to buy vehicles.
It added that 62% participants (in the survey) plan to buy vehicle in 2022, 51% are planning to buy an SUV, and 43% of participants prefer petrol vehicles.
“The outcome of the survey affirms that the purchasing sentiment of Indian consumers is optimistic and Covid-19 has not dampened the demand for new vehicles,” the survey noted.
As the demand for new vehicles increases, people are looking at discounts that are usually offered at this time of the year. According to the survey data, as many as 87% respondents expect discounts to be offered during this festive season. At least half of them agreed that they may be willing to exceed their budget if they get heavy discounts on high-end models, and whopping 94% buyers would also check multiple dealerships and look for better and more competitive discounts.
“Festive discounts are amongst prime determinants of vehicle sales performance in India. Even though most consumers may delay their purchase until next year, lucrative discounts and deals may inspire them to buy vehicles this year. Given the value-focused consumer, OEMs and dealers may offer discounts on value-added services such as extended warranty and add-ons but may remain reluctant in offering full-fledged discounts for flagship models,” said Saket Mehra, partner & Auto Sector leader, Grant Thornton Bharat.
Among passenger vehicles, the trend of utility vehicle preference over sedans persists this year as 51% respondents expect to buy the former. Further, according to the survey, India’s readiness for electric vehicle adoption has also seen a boost. “Around 21% of respondents indicated their willingness to buy EVs and at the same time 24% said they would prefer buying a hybrid vehicle,” the survey noted.
“From EVs and alternative fuel options, Indian consumers seem ready to embrace the paradigm shift to electric mobility. They are overcoming their hesitation and prefer sustainable and environment-friendly solutions,” added Mehra.
The survey results also revealed a shift in the preferred mode of transportation. While two years ago, car-sharing services were hailed as a popular and economic mode of transportation, today their prevalence has become limited. Almost 50% of respondents are willing to buy a new vehicle for personal commuting. The survey also reflected on consumers’ preference for opting a subscription model for personal commuting. Among respondents, 56% said they would opt for a vehicle subscription model, as it saves them money.
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