According to a joint report released by management consulting firm Bain & Company and Facebook titled “2020: How Digital Transforms the Automotive Industryâ€, India’s current $18 billion in car sales is digitally affected. By 2020, 70% of India’s car sales (to reach US$40 billion) will be affected by technologies such as digital media and 3D printing.
According to the latest report, by 2020, 70% of India's car sales (will reach 40 billion US dollars) will be affected by digital media and technology. The same report released jointly by management consulting firm Bain & Company and Facebook shows that India’s current $18 billion car sales are digitally affected.
The title of the joint report is "2020: How Digital Can Transform the Automotive Industry." The joint report describes how new technologies such as 3D printing, digital engineering, smart sensors and the Internet of Things affect the automotive industry in India in R&D, manufacturing, sales, marketing and after-sales services.
It is reported that the report is based on its findings on the response of 1,551 consumers in India who purchased vehicles in the past 12 months, as well as the findings of a survey of 87 car dealers and the dialogue with the car manufacturer's company management team. The report also obtained information through the UK's "Global Automotive Consumer Survey."
Karan Singh, managing director of Bain & Company India, said: "As the digital technology changes in the manufacturing and after-sales service value chain, industry rules are changing, and automakers are facing new opportunities and threats. Players from outside the traditional automotive industry are global Rapid growth. It is important to develop business models to take advantage of changing profit pools."
Currently, Indian automotive OEMs may be regarded as lagging behind in digital investment and adoption, because in 2016, India's digital media market spending only accounted for 10% to 11% of its marketing expenses. In addition, most car dealerships in the country (85%) still rely on bulk SMS and database call marketing and customer positioning strategies.
Yaquta Mandviwala, co-author and co-author of the report at Bain & Company, commented: “Currently, digitalization is of utmost importance for companies. To maintain market position, we need to keep up with changing customer behavior and differentiate retail formats into brand experience centers. , Use product digitization to create deeper, continuous relationships and invest in strong analytical pillars."
Currently, about 80% of online research is conducted on mobile devices, and the report is expected to rise in the next few years. Coupled with the increasing influence of younger consumers (under 35 years of age) on digital marketing, this means that auto companies must increasingly focus on the marketing of mobile devices.
In addition, with the popularity of application-based driving services like Uber and Ola, the auto industry will have to find new business models to compete with and maintain relevance with the new generation of consumers. According to reports, 40% of car sales (23 billion U.S. dollars by 2020) are expected to be affected by social media. At present, this number is 20%.
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