SIAM survey finds 73 percent willing to buy new vehicles to avoid public transport during pandemic

'While most consumers are preferring personal mobility over public and shared transportation, the slowing economy and its adverse impacts will continue to remain a cause of worry for consumers'

By:Updated: Sep 16, 2020 2:35 PM
car sales pandemicImage for representational purpose only

Society of Indian Automobile Manufacturers (SIAM) and Grant Thornton India have released the findings of an opinion poll titled “Personal Mobility Experience post COVID-19”. The joint survey suggests a shift in preference, with more consumers likely to opt for owned vehicles, than travel by public transport. 73% of the respondents displayed their willingness to purchase new vehicles as the economy slowly revives.

It is interesting to note that, while 29% of the surveyed respondents planned to purchase a new vehicle over a period of 12 months, 8% showed a willingness to purchase a new vehicle in the next six months. More than 56% of participants feel that it makes better financial sense to keep their current vehicle, considering the overall economic scenario at present.

“The automobile industry was already witnessing a de-growth even before the pandemic befell. COVID 19 has further intensified the situation. The survey revealed two clear trends on the personal mobility front, “ Rajesh Menon, Director General, SIAM said.

“Due to safety concerns in the wake of the pandemic, customers who earlier were not considering buying vehicles, have also now become potential buyers. The automobile sector has traditionally been one of the most resilient sectors and findings of this aforementioned survey corroborate our optimism towards a healthy resurgence soon.”

Reasons to buy a new vehicle:

siam survey reasons to buy a new car

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Also read: August 2020 car sales: Maruti, Hyundai, Tata lead the charge with growth amid coronavirus pandemic

Also, as per the survey findings, more than 57% of respondents in metro and non-metro cities, expressed that they are more likely to go for Passenger vehicles for daily commute when asked about the type of vehicle they are most likely to buy. Respondents also showed preference towards two-wheelers and electric vehicles (EVs), accounting for around 20% each.

Overall, 68% of the total respondents preferred to stick to the traditional concept of visiting showrooms for vehicle purchases. While 25% were open to exploring online channels, only 7% of total respondents preferred to use digital platforms.

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