The automotive industry was shaken by unprecedented COVID-19. Many auto brands had to shut their workshops and set their workers on a minimum monthly wage until lockdown. Before it all happened, we did the automobile market analysis and found technology-based cars, driverless vehicles, and electric cars, and scooters in the market. But auto industry sales were negatively dropped as the unpredictable happened. According to an automotive market research report, the decadal growth of the auto industry slowed from 12.8 per cent to 1.8%.
As automotive brands prepared themselves for FY21, they adopted new methods of sales-boosting as they adapted the “new normal.” Now they prioritize the initiatives that bring car buyers to them at their convenience. So, here are five automobile industry trends that helped automakers prepare for what’s ahead.
People prefer car ownership
Automotive industry research was conducted, and it was found that everyday modes of transportation became an issue amid the pandemic as people did not want to share rides through public transports. As a result, their desire to own a vehicle has grown more than ever. Droom’s automobile trend report in their market insights showed that 57.4% of people bought cars while 18.5% and 14.3% of people bought bikes and scooters.
This growth in automobile purchases also drove used cars and bikes sales as people found comfort in personal spaces while owning a vehicle. This also made them secure while being at a safe distance from the public.
People prefer online car buying
As every sector went online in the wake of the pandemic, people started searching for auto stores online. Moreover, as more and more people wanted to buy vehicles, they also wanted an experience in their vicinity. Thus, auto showrooms availed for people home-delivery, at-home drive test, review videos, and video conferences. As a result, an increase in the number of virtual auto stores was also witnessed.
Thus, automobile e-commerce had a significant surge. In addition, auto e-commerce portals helped car buyers to interact with dealers seamlessly.
Smart Cars in the Market
Driven by internet availability, car manufacturers are building smart connected features in their cars. Over the last few years, technology in vehicles has been developing at a faster pace. Automobile market overview explains that car manufacturers have developed their cars with blue link technology to connect the car with mobiles. Cars with voice-controlled commands, touch screen infotainment systems, super sound systems, safety alarms, and sensors are preferred more by car buyers today. Customers can access a cloud-powered app from their smartphones to control the features of their cars. AI-based cars are expected to transform conventional functions.
People turn towards the digital events
As the covid lockdown happened, more and more events were canceled or required to be postponed, a large group of people shifted their events online. As a result, more and more people turned towards digital events for auto industry research. Many auto manufacturers organized their live streams to engage potential car buyers in their latest products. YouTube channels and live streams were also increased as most people wanted to have a car buying experience from their homes. Manufacturers did not know that a pandemic would help them to grow their sales.
Used car sales increased
Because people did not want to share rides with other people in public transport, many bought used cars to avoid public interaction. Not only a fear of being in touch with people to prevent contact with the pandemic but also to maintain hygiene and avoid any chance to catch covid. Automobile E-Commerce like Droom has made for car buyers the experience of buying a second-hand car very easy. These online E-Commerce portals have changed the face of the used car market.
The pandemic has changed the auto business for good, and while we cannot predict the future, we know that digitization will be seen more in FY 2022 and upcoming years. As a result, automakers will be shifting towards greater technologies in their vehicles, and automobile e-commerce will occupy the market.
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