A new study shows that 69 percent of Indian consumers are willing to try subscription-based ownership and servicing of different models from the same brand. Deloitte Global Automotive Consumer Study 2021 states that the emerging trend, at the back of the pandemic which has left them more cost-conscious, is seen the highest among Indian consumers, followed by China and the Republic of Korea. With 37 percent of consumers planning to buy a car in India much earlier than planned, a subscription model is a viable option for the consumer, OEMs as well as distributors indicating greater demand for mobility options in the marketplace.
The study, in its 12th year, provides insights from 24,000 consumers across 23 countries on how they feel about electric vehicles, vehicle purchasing, financing, and more. According to the study, Indian consumers have altered their timeline for acquiring a new vehicle, and are willing to consider more affordable options.
Shift in consumer mindset
Shifts in consumer mindset show them rethinking about not only their next vehicle purchase but also what type of vehicle they will buy next. Timelines for acquiring their next vehicle vary greatly across the world and approximately one-third of consumers in India (38 percent) plan on delaying their next vehicle purchase and 65 percent of consumers intend to acquire a less expensive vehicle indicating a downside demand risk in the country.
Newer financing options emerging and over 50 percent of Indian consumers would like to go for early termination as an option for vehicle finance accounts.
Significant uptick in technology adoption
Indian consumers show a strong inclination towards digital and technology adoption as 81% of them prefer connected cars, owing to the benefits and convenience that comes through smartphone connectivity.
There is also a conscious approach seen towards data sharing, as 66 percent of Indians fear data theft and hacking into their connected car. Indian respondents have shown willingness to pay up to Rs 25,000 more for a vehicle with advanced technologies.
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