NEW DELHI: The strong acceptance of e-commerce and digitalization is expected to accelerate the growth of the automotive sector, said consultancy Grant Thornton Bharat.
As a result, the automotive market is expected to grow more than “2.3 times”, from $222 billion currently to $512 billion by 2026.
Notably, analysis by Allied Market Research, Market Line, Reserve Bank of India and Grant Thornton Bharat showed that e-commerce portals focused on the automotive market, such as Droom, Cardekho and Olx, have put consumers and l user experience in the spotlight. help manufacturers attract more users.
In addition, the growing internet and smartphone user base will further drive digital transformation and lead to an increase in the size of the e-commerce portal market.
“The strong emergence and acceptance of the online channel has given impetus to transparent solutions, price discovery, transparency, real-time digital payments as well as vehicle quality certification for consumers. automotive sector,” said Rahul Kapur, Partner, Growth at Grant Thornton Bharat.
According to the analytics report, since last year, Maruti Suzuki has seen its sales increase fivefold through digital means, which now accounts for 20% of its total sales.
The strong emergence and acceptance of the online channel has given impetus to seamless solutions, price discovery, transparency, real-time digital payments as well as vehicle quality certification for consumers around the world. automotive industry.Rahul Kapur, Partner, Growth at Grant Thornton Bharat
“These shifts in consumer shopping and search preferences signal a shift for the automotive sector, as Covid-19 has played a big role in the rise of the online channel.”
“Technological innovations such as secure digital payments, hyper-logical logistics, analytics-based customer engagement, increased consumer awareness and digital advertisements are likely to support growth going forward.”
According to the report, other factors such as growing middle class and young population with increasing disposable incomes will contribute to the growth of the sector.
In addition, the ease of owning a vehicle due to the availability of multiple financing options as well as the reduced length of vehicle ownership due to regulatory rules in some states, cited the report as other driving factors. the growth.