Going Phygital, The Desi Way!

While customers are going digital in their car-buying journey, the ties to the showroom are still strong, says Vinkesh Gulati, President, FADA.

Multiple lockdowns and the resulting closed showrooms have nudged more and more customers towards the digital route to book their vehicles. All manufacturers have rolled out websites that provide all the necessary tools to buy a car online. However, as lockdowns open up, customers are returning to showrooms and Vinkesh Gulati, President, FADA, reckons that despite the digitalisation of a car buyer’s journey the showroom still features prominently for the Indian car buyer. 

The pandemic, while locking people indoors, also increased the importance of safe surroundings. Thus, 80 percent of Indian consumers stated that they prefer online channels when buying a car, as stated in Capgemini’s research note - Shifting gears: COVID-19 and the fast-changing automotive consumer.

Most OEMs have gone from online brochure and lead collection systems to detailed configurators that show the car in your chosen colour, variant and even accessories. Online booking has been available for some time; Maruti Suzuki offered it first in 2016. However, now more and more manufacturers offer you the option of completing the entire transaction online. 

In October last year, Maruti Suzuki had stated that digital enquiries had increased five times, or to 20 percent of total sales and that in the first-wave scenario, the digital enquiry contribution had further increased to 33 percent. “During May (2021) we saw that 45 percent of total enquiries were from the web,” says Shashank Srivastava, Executive Director, Marketing and Sales, Maruti Suzuki, adding, “At the moment (mid June) it is just short of 40 percent. And should stabilise around the 35 percent level.”

• Best Time To Buy Your Car? It’s Now.

• Skoda Sets Its Sights On Becoming The Leading European Manufacturer In India

“Lead generation is slowly and steadily shifting from cold calls to digital,” says Vinkesh Gulati, President, FADA, “ but when it comes to buying a car online, only 1-3 percent of millennials or GenZ may go for it.”

“Before they book the car, they want to touch the car. The Indian psyche is very different. Customers want to make sure they are getting the best deal.” Gulati says that post the lifting of the lockdown, customers are making their way back to showrooms in strong numbers. Adds Srivastava, “to complete the transaction people want finance,  confirms “actual online order completion is negligible

Most interesting of all, customers are creating their own ‘phygital’ purchase experience now.  “People come to dealerships, see the car, and then book online (from the showroom) on the company portal. They get a few incentives for booking online, like free accessories. It does affect the dealer margin but for a petty sum we don’t want the customer to be inconvenienced.”

Interestingly, the Capgemini report also stated - “80 percent prefer in-person interaction with a sales representative at a dealership when closing the purchase. However, they prefer a more customised and digital dealer experience – almost 88 percent of consumers say that dealers should better customise the vehicle deal to suit their mobility or financing needs and choice of features.” 

While the report is based on a global survey, devising a ‘phygital’ world that works, Indian customers are walking the talk to a tee, even if unknowingly.

Words by Kartikeya Singhee