Hyderabad, October 3, 2024: As India gears up for the festive season—a period traditionally marked by increased consumer spending—Way2News, a leading hyperlocal news platform, has released its latest report titled “Gearing Up: A Look at India’s Car-Buying Mindset.” Based on insights gathered from over 400,000 respondents across the 5 South Indian states - Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, and Kerala - the report provides a comprehensive look into the evolving preferences and behaviours of car buyers in South India during this crucial sales period for the automobile industry.This report from Way2News presents a detailed analysis of the car-buying landscape in South India as the festive season approaches. Here are the key takeaways:
Overview
- Current Market Situation: After a record-breaking sales season in 2023, the Indian automobile market is facing a slowdown, with approximately 7 lakh unsold cars valued at ₹70,000 crores sitting at dealerships. This festive season represents a critical opportunity for automakers to rejuvenate demand.
Key Insights
- Consumer Intent to Purchase: 42% of surveyed respondents plan to buy or upgrade their car within the next year, suggesting potential for a sales rebound.
- Safety as a Priority: Safety features have emerged as the most significant factor for buyers, with 43% emphasizing the importance of airbags, ABS, and ADAS over traditional considerations like price or fuel efficiency.
- SUV Popularity: 58% of respondents prefer SUVs, viewing them as symbols of status and comfort rather than just vehicles. This preference significantly outpaces other categories like sedans (20%), hatchbacks (14%), and MUVs (8%).
- Interest in Electric Vehicles (EVs): 31% of respondents are inclined toward EVs, driven by sustainability concerns. Additionally, 65% prioritize eco-friendly options, aligning with government initiatives to phase out diesel vehicles.
- Digital Influence: The digital landscape plays a pivotal role in decision-making, with over two-thirds of buyers relying on online resources like social media and comparison websites for their research.
- Financing Flexibility: With rising costs, flexible financing options are crucial for over half of the respondents, highlighting the need for automakers to provide accessible loan and installment plans.
Conclusion
Raju Vanapala, CEO of Way2News, emphasizes that the findings reflect a significant shift in consumer priorities towards safety, SUVs, and sustainability. As automakers adapt to these changes, understanding consumer sentiment will be vital for overcoming the challenges posed by a slowing market and leveraging the opportunities presented during the festive season. This period holds the potential for a transformative change in the auto industry, emphasizing the importance of building trust and aligning with modern car buyers' values.
