Traditional brick and mortar stores have always ruled over new car sales in India. Buying a car is often the second most expensive buy to the average Indian customer in his / her lifetime. Online sales of new cars in India continue to be a very underused option, though at a nascent stage.
The coronavirus pandemic has led to a 21-day lockdown in India which has resulted in all car dealerships being shut down. Although this closure may be temporary, in the short and medium term, most automobile manufacturers will be looking to cut costs. One of those methods of cost-cutting is digitizing the sales process.
Online vehicle sales in India isn't exactly a new concept, though it's still at a very nascent stage. By partnering with e-commerce platforms like Paytm and Snapdeal, two-wheeler makers like Hero MotoCorp, Suzuki, Mahindra two-wheelers and TVS have tried the online route.
Hero 's association with Snapdeal started in November 2014, selling three lakh units via Snapdeal 's website within 10 months, amounting to a total Rs 1,500 crore value. At the time, this was five per cent of the annual sales of Hero MotoCorp.
Because of the overall macroeconomic situation in India, the current crisis due to the COVID-19 pandemic has hit the Indian automotive industry amid a major crunch. While the full scope of recovery may still be difficult to gage, the coronavirus pandemic is sure to leave several feathers ruffled.
According to a recent report published by PricewaterhouseCoopers, the Indian auto sector will recover in the best possible scenario by March 2021. Only by July 2021 would a more optimistic scenario get us back to work.
Current scenario
Hero MotoCorp, India's biggest two-wheeler maker, has been betting big on digital sales. Starting in the cities of Mumbai, Bengaluru, and Noida, it started doorstep delivery of its products in August 2019. The company wants to increase this to 25 cities in a phased way over the next few months, which will give Hero the advantage of a first mover.
The South Korean carmaker Hyundai was among four-wheeler manufacturers pioneering in digital sales. As an additional sales channel for its dealerships, it started a pilot projectClick to Buy in Delhi-NCR in January 2020. Hyundai's platform is connected in real time with all its dealerships across India for the convenience and need of new-age digital customers. It offers all models, including the likes of the new compact SUV Creta and the Verna sedan, via its digital platform.
Tata engines, too, have introduced a contactless sales platform that has integrated 750 of their dealerships. The company will also offer vehicle house delivery at a later date