Is automobile industry getting disrupted by digitalisation?

According to a survey conducted by Bain and Company in partnership with Facebook has revealed that more than 70% of the sales of automobiles in India will be heavily influenced by the digital sector by the year 2020.

Coming to the respondents of the survey, the Bain – Facebook survey has considered the responses a total of 1551 Indian customers that has purchased a vehicle in the recent past 12 months. Also included were the responses of 87 dealers in the survey and also the opinions of top management officials at several automobile companies.

The research of the Bain-Facebook also suggested that more than 80 per cent of the online research for automobile purchases is conducted on mobile devices by several Indian customers of automobiles. The Indian consumers which were influenced digitally for automobile purchases was standing now at 45%, which is going to increase to 60% of consumers using digital methods for researching online about their desired automobiles and also to conduct their purchases of automobiles.

Another interesting aspect that this survey by Bain-Facebook has revealed is that most of the consumers that are driving this change of influencing the automobile industry in a digital way is the Indian youth that are below the age of 35 years.


The survey shows that over 49 per cent of customers who are below the age of 35 years saying that they are already being digitally influenced in their decision making related to automobiles, while over 40 per cent of the people who above 35 years of age are also giving the same response. Hence, the research concludes that in the coming future, this per cent of Indian youth being digitally influenced in their decision making related to automobiles will drastically increase.

On the other hand, the OEMs in the automobile industry that constitute an important portion are lagging behind in becoming digitalised. So, it is advised by the survey according to the revealing of the survey that the OEM players need to push up themselves in the digitalised world and make themselves to follow digitally in the market.

Another interesting aspect found in the survey of the digital influence on automobile industry is that the role of the dealers of automobiles needs to be re-evaluated by the concerned in the industry with the digitalisation gradually evolving at a rapid momentum. This is because, almost 50 per cent of the automobile buyers in the Indian automobile industry have already made their buying and other decisions on the brand and model they desire, even before arriving at the dealer store, on their digital devices.

Considering this aspect, the survey has suggested that these dealerships must be converted into brand experience centres for the customers, where they can experience the initial test and then take their lively decision on the automobile they have selected.

It is advised for all the players in the automobile industry to consider all these aspects revealed by this survey and then take the proper decisions to adapt to changing scenarios in the automobile industry, which would help them in staying up to date with the changing scenarios in the industry.

Leave a Reply

Your email address will not be published. Required fields are marked *