Perceptions of automobile consumers report june2020

Copyright© 2020 INTAGE INDIA Private Limited All Rights Reserved.
Market Perception and Future Perspectives
With/ Post Covid-19
June, 2020

Copyright© 2020 INTAGE INDIA Private Limited All Rights Reserved. 2
Perspective of Car Market
Post Lockdown

Car is the most admired partner for daily transport as well as
occasional long distance leisure trips.
3
Mumbai – Shirdi 250 KM
Kolkata – Mandarmani Beach 174 KM
Delhi – Manali 537 KM
Bangalore – Mangalore 350 KM Chennai – Coimbatore 500 KM
Daily / Regular Usage of Car Leisure/ Trips with Car
Over and above the daily work related city commute, attending parties, family get together or going
for shopping are the key usage of the car; car has been constant companion on road trips to hills,
beaches, native places, religious destinations with family and friends

Car owners can’t imagine life without car. Suffices emotional as well as
functional benefits being associated with own car.
4
Having a car allows a person to move freely – a true sense of more convenience, comfort, safety
and it builds an emotional attachment.
Fortune
Own
Child
Family
Member
Freedom
Love
Partner
Second
Home
Ambition
Own Life
Safety
Comfort
Hassle
free
Tension
Less
Convenie
nce

Post lockdown, consumers are likely to avoid public transport to reduce
the risk of infection, hence travelling in own vehicle will increase.
Mode of transportation
before/after the lockdown
Reason for buying motorcycle/ car
51%
50%
49%
33%
23%
12%
5%
Driving can reduce chance of
infection
I feel commuting is more flexible with
own vehicle
Public transport is not safe
Entire family can travel together in
own vehicle without having to
depend on public transport
Vehicles will have attractive prices/
lower finance cost
Will prefer electric/ hybrid cars more
over petrol/ diesel cars as they help
keep pollution lower which has…
Other
Base – All (546)
Base –
Car/motorcycle
intender (78)
Q. Which of the following product(s) you are planning to purchase once the
lockdown period is over? (Multiple Answer Question)
Q. Why are you planning to purchase your own Car/ Motorcycle/ Scooter/ Moped?
5
Before
lockdown
After
lockdown
Own Car 29% 30%
Metro/
Train
41% 27%
Taxi/
Ola/ Uber 32% 21%
Bus 26% 17%
Auto/
Rickshaw 23% 17%
Source: Intage Report “How COVID-19 is changing the consumers”, 2020

Car owners adjust new normal life without going out by car during the
Covid-19 lockdown period. Frequency of driving car will be decreased.
Car owners fit their lifestyle into new normal life without car;
• Communicating via online tools with family/ friends
• Enjoy entertainment at home
• Enjoy cooking instead of going to restaurant
Activities Engaged at Home
During Lockdown Period
Daily /
Regular
Usage
Leisure/
Trips
Before
lockdown
After
lockdown
Every day Not daily
Several
times
a year
Very few
Changes in Car usage frequency
Before/After the lockdown
“Will not drive so much after lockdown. Don't to travel
everyday for going to office because of work from home.
Not friends meet, not going to cinema halls, not going to
any restaurant for a while.”

Consumers try to save money and live with less because of economic
downturn.
Q. Which of the following activities will impact/affect you after the lockdown period is over. Please select all the options that are applicable.
55%
49%
42%
33%
33%
32%
31%
31%
30%
30%
Savings for future
Increase the work pressure and stress
Make us learn to live with less
Expenditure due to increase in the cost of food and
essential items
Decrease frequency of/Defer going out to crowded
places like malls, markets
Increase the stress for meeting/achieving the
business targets
Loan repayment
Make us look for deals/savings more
Children's' education in the current academic year
Increase the stress of losing the job Base – All (546)
7
Activities impacted/affected for lifestyle
Source: Intage Report “How COVID-19 is changing the consumers”, 2020

While the dependency of own car will increase to avoid the risk of
infection, future purchase got prolonged due to reduction in usage and
financial situation.
8
Increased dependency on own
car as compared to shared cab
services (e.g. Ola, Uber etc.)
or other public transport post
Covid-19
Reduction in usage of car owing
to “Work From Home”,
restrictions on socializing during
and post lockdown
Peoples changing mind set
towards more savings
Future purchase tend to get prolonged due to Covid-19
“I need an additional car for my wife.
Post lockdown, she need a car while I
go to office. The new car can also be
used for other household activities as
well…”
“the main factor (not purchasing
new car) is for saving money
during this time…”
Restraints for new car purchase
Needs of new car purchase
Perspective of car market post lockdown:

How “Digital” Incorporated
into Purchase Journey

Online information are more reliable and help in narrowing down the
options, however, typical consumers always consult with peer groups
and visit showroom before final decision of purchase.
10
Comparison &
narrowing down options Visit Dealer Finalize
-
-
-
Test drive
[Media/ Advertisement]
• New model and variety – fresh launch
• Look and feel of driving, terrain, view
of car from different angles
[Online]
• Complete information basket –
technical specifications, colors, cost,
designs, mileage, pros and cons etc.
• Videos, comparison between models
and reviews/ratings
[Word of mouth in peer groups]
• Real time usage experience on
mileage, servicing related including
spare parts, driving comfort, overall
passenger comfort, features, road
grip, braking efficiency etc.;
sometime test drive
[Documentation]
• Financial related
information –
down payment,
EMI, interest
[Conversation with staff]
• Technical specification –
reverification and
servicing related
[Test drive]
• Real touch and
feel
Offline
Online
“We compare so many things at dealership –
space, boot space, head room, leg room”
“We buy many things online but can’t buy
car online…have to go and physically
check…
Typical
purchase
journey
Offline information is a MUST

Online Journey 1– Different consumers follow different steps
11
Search
Model
on
Google
Compare
Check
details
Open
online
Car
compare
website
OEM
Search
Model
Search
Variant
Search
Mileage
Search
Consumer 1
Consumer 2

Online Journey 2– Different consumers follow different steps
12
Google
Model
Model
on OEM
Website
360o
Experie
nce
Colour
Search
Reque
st Test
Drive
Check
Videos
Consumer 3

It is difficult for car owners to adopt online sales because they put
importance on a personal touch at the showroom. However, online
service will improve customer experience.
13
Comparison &
narrowing down options Visit Dealer Finalize
-
-
-
Test drive
“There are a lot many things which you need to look at before
buying a car and more importantly develop a good relationship
with the dealer…. ”
Customers are still willing to have personal touch with vehicle and dealer
Potential areas that online will improve customer
experience post lockdown
[Booking dealer/test drive]
Waiting long time at dealership
leads dissatisfaction of customer.
Online booking provide hassle
free and reduce risk of infection
at dealer.
[Online finance]
Customers expect online
financing will make them easy
to compare the all options and
to receive transparent
quotation.
“It’s all about experience for the entire family from time of
planning to booking to getting the delivery.”
Typical
purchase
journey
Online already plays
an important roles

Customer are willing to move over to online aftersales because they
expect the convenience of online/ contactless service.
14
Positive Negative
Perception about Online After Sales
Out of 10 respondents
• Convenient – Easy at door step
• Saves time
• Hassle free and tension free
• Ensure cost at company norm
• Safe because of contactless
• Chances of cheating about what done and
what claimed
• Should be done in front of eyes
• No damage be made to car
• Doubt about parts replaced
Online will make them free from
troublesome with services
Suspicious towards service is the bottle
neck to adopt online
Benefits are… Concerns are…
“Service centre need to be transparent with things which
they have repaired or replaced…we should be able to track
our vehicle at the service centre”
“Toyota has an app on which you can book service and
request them to pick up and deliver the car…I have been
using this service and they are always on time….”
To enhance contactless service, communication to reduce concern on the service
quality is necessary.

Technology and Features

Safety features are perceived as a next level basic necessity
16
Air bags in all seats
Biometric Recognition Fatigue Sensor In-built Camera
Cruise Control Blind Spot Detector Parachute Mode High Beam Protector
“In rainy season, it is difficult to drive because the side mirror does give clarity in viewing. If we have feature like
side camera outside and in the inside screen, we easily observe the view and drive more safe...”
“Biometric features are very useful now-a-days as it can protect the car from theft. This also gives confidence
that the car is safe and can be parked anywhere even during night time…”
“Driving at night time is difficult specially on highways as opposite side car’s headlight falls on eyes and it creates
blindness for some seconds. The front glass of the car can be a equipped with a high beam protector for better
safety…”
Top Preference Second Preference

Post Covid-19, health concerns will evoke the desire for new car
features
17
Features’
Requirement
driven by
Covid-19 Air Quality Sensor Automated Sanitizer Car Air Purifier Health Monitor System
Features’
Requirement
for the future
Remote Operation Thick Foam at Roof Automated Car Cover Puncher less Tyre
Powerful LED
Lamp
Apple Car Play More Boot Space
Camera for Visibility
GPS Enabled Car
“Similar to airbags, OEMs should focus on suitable safety hygiene features in post Covid scenario...”

Traditional mind-set about Electric Vehicles has changed over time. If
infrastructure is provided the way, India will become a green country.
18
Drivers
• Govt. Policy and Push for Adoption
• Sustainability
• Ecological – Pollution Free City
• Willingness to Adopt New Technology
• Battery – the Future in Industry
• Much Lower Running Cost
• Feature driven Safe Future
Barriers
• Insufficient Infrastructure
• No/Limited Charging Stations
• Lack of Service Centers
• Low Range – Limited Mobility
• Slow in Adoption Trends
• No Charging Option at Home as
Staying in Condominium
• Heavy Battery – Dangerous
Increase
Intention of
EV
Positive outlook towards other alternatives
sources including usage of other renewable
energy sources in automobile industry
EV

Connected features are new age technology and mostly welcomed as it
is related to convenience as well as safety.
19
Convenience
Personal Safety in
Emergency
Vehicle Tracking System
(Geo Fencing)
Theft Security
Driving Comfort
Car Safety
Remote Operation
“Connected feature will help to be track your car all the time. It also helps to protect your car while
parking in remote locations and also, it helps to prevent the car from being theft…”
“Yes, I have heard about the connected car. It‘ is very interesting feature and you will be always
connected to your car. It will save life in case of emergency and make driving very comfortable…”
Detailed understanding about the feature is yet to be built.
However, overall technology behind the Connected feature itself is an
‘EXCITEMENT’.
Connected Car

Car Leasing is perceived as a good alternative for commercial segment,
but not for personal need as the charm of owning your own car will be
missing.
20
Awareness of renting /leasing a car like the facilities provided by ‘Zoom car’ is
there.
However, detailed understanding is lacking about the conditions and benefits
attached to it.
Convenience
& hassle free
No charm of ownership
• Can change the car whenever wish
• Safety and hygiene factors
• Maintenance free
• Recent trend in market
• Economical
• Tension free
• Can’t select accessories basis own wish
• No modifications can be done on the car
• Not sure about safety features present in the
car
• Commercial rental purpose
“If I go for lease car, then at the end, I have
nothing. On the other hand if I purchase new
car on instalment, then after 2 -3 years I have
my own car and my own assets. Feeling of
owning a car is something different than
renting/leasing a car.…”
Barrier to
expand
leasing service
Perception about leasing of car
“Safety & hygienic purpose record
maintained consider leasing cars. This
best offer for economic and no
maintenance…”

Perception towards
Country of Origin

Superior Engine Quality
Indian cars adding safety as one more dimension. Japanese cars
continue to be considered as superior in technology and hence reliable.
22
Technology
Low Maintenance
Reliability for domestic majors comes from brand familiarity; while in Japanese cars reliability is on account of
superior technology which gets further coupled with engine quality leading to low maintenance as also build quality

Mixed reaction towards Chinese brands. They offer technology and
innovations, however Covid-19 evoke negative sentiments.
23
Innovative Design
Impressive Technology
Competitive
Not
Trustworthy
Poor Quality
Short Lifecycle
Use and Throw
Money Wastage
Increase negativity towards Chinese origin products due to Covid-19
“They will definitely get huge impact due to Covid-19. People won’t buy & support any
Chinese products anymore...”
“I would never buy Chinese cars. Chinese cars I wont’ prefer, not only for Covid -19
situation but even before or after Covid also...”

Summary
24

Market Perception and Future Perspectives post Covid-19
25
While the dependency of own car will increase to avoid the risk of infection, future
purchase got prolonged due to reduction in usage and current financial situation.
Financial scheme to boost their intention is a key factor for the market.
Online information are more reliable and help in narrowing down the options, however,
typical Indian consumers always consult with peer groups and visit showroom before
final decision of purchase. While it is difficult for consumer to adopt online shopping in
a short–run, digitalization will provide the solution at dealership or service, hence will
improve customer experience.
Purchasing new car tend to get prolonged
“Digital” improve customer experience
Safety features are perceived as a next level basic necessity which includes air back
and advanced security features. Due to Covid-19, the health concern will evoke the
desire for new car features post lockdown.
Driving safety + Hygienic
Health Monitor System
Car Air Purifier

Appendix
26

Outline: Quantitative research
• Overall reaction on the current situation
• How to spend time during the lockdown
• Changes in shopping behavior during the lockdown
• Changes in life in the future after the lockdown is lifted
Key
Information
Area
• Online survey through a structured questionnaire
• Online questionnaire link was developed by INTAGE India and shared
with consumers across India using internal database/connections
Methodology
• Approx. 20 minutes (Approx. 40 questions)
Interview
Length
• 16th April - 24th April, 2020
Timing
• N= 546 [*No specific quota assigned]
Number of
sample
• India (Nationwide)
Area
• No respondent criteria
Target
27

Outline: Qualitative forum
• Covid-19 affect on their mobility life
• Economic slowdown affect their future purchase decision
• Perception to contactless point of sales/ service
• Expectation of feature
Key
Information
Area
• Qualitative WhatsApp forum
• Respondents are recruited across metros (Delhi, Mumbai, Bangalore,
Chennai, and Kolkata) using internal database/connections
Methodology
• 8 days (3-4 questions per a day)
Interview
Length
• 11th May - 20th May, 2020
Timing
• 10 respondents (5 B-High Hatch / 5 Sub 4m Sedan)
Number of
sample
• Delhi, Mumbai, Bangalore, Chennai, and Kolkata
Area
• Male aged 30 to 40 years-old
• Owner of B-High Hatch or Sub 4m Sedan
Target
28

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[Contact]
* The copyright of this report is owned by Intage India Private Limited/ Intage Group.
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Perceptions of automobile consumers report june2020

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