HomeCar NewsIncreased prominence of women car buyers in India

Increased prominence of women car buyers in India

In 2014 and 2013, fuel efficiency (67%) was top priority for consumers when buying a car. Enhanced vehicle lifespan, safety innovation and ergonomics/comfort followed at 53%, 52%, and 49%, respectively. Use of alternative fuel technologies remains a low priority pointing to purchase decision being driven by affordability. Vehicle quality concerns have risen keeping in mind recalls. Original Equipment Manufacturers (OEMs) strive to maintain balance between product quality and cost optimisation.

Sales potential of small car segment is set to accelerate over the next 5 years

Innovations in tech-enabled connectivity between driver, car and its environment rank in the bottom 4 of 10 features that respondents think consumers will desire between now and 2020. While mobility culture grows, premium and mass market Original Equipment Manufacturers (OEMs) could dominate the field over the next decade over tech-based corporations making a headway.

34% of survey respondents feel established premium market OEMs are likely to dominate up to 2025 and 48% believe this is somewhat likely. Automotive sector is feeling pressure from global regulatory standards focused on optimisation of traditional powertrain tech, and heavy investment into alternative drive trains. Consumers are turning tech-savvy and demand new and innovative services says Dieter Becker, KPMG’s Global Head of Automotive.

Technology and communication industry players are likely to matter in the mobility space. As such, automotive industry players need a business model that envisions customers’ whole lives beyond their role as drivers to cater to customer interface needs.

Indians consider fuel efficiency and safety innovations as top considerations while purchasing a car. Quality service experience during purchase is extremely important to Indian consumers. Indian companies will invest in 2 powertrain technologies over the next 5 years: 33% in downsizing and optimisation of internal combustion engines and 27% in fuel cell electrical vehicles. It’s expected, Brazil, Russia and India each will export more than a million vehicles to other markets over the next 3-5 years.

Rajeev Singh, Head of Automotive sector, KPMG in India says Indian Automotive industry could face 2 issues. Regulatory norms are likely to get tougher on safety, emission norms, fuel efficiency, manufacturing defects and product recalls. At the same time, product life cycles are getting shortened, coupled with frequent changes in product ownership and likely emergence of new product segments.

Growth in the second hand car market in India is a key success factor for players who enable easy exchange and increase market share. Huge investments are expected in the next few years. India hold potential for small cars and high end luxury cars, and prominence of women customers.

59% participants feel market entry barriers or restrictions in India will decrease. Governmental interventions will decrease, and Indian auto companies are expected to invest in new plants and module/platform strategies. Investing in battery (pack/cell) technologies is not expected.

Emphasis on fuel efficiency and enhanced vehicle lifespan reflects emphasis on the idea of total cost of ownership (TCO) for private consumers. In the next 2 years, global vehicle sales will surpass the 100 million mark, and sales will grow till the end of the decade with increased demand in emerging markets like, China.

While cleaner technologies are a focus, many believe downsizing traditional internal combustion engines would offer best solutions in short-to-medium-term. Fuel cells are ahead of battery electric systems becoming the number two priority for investments until 2020.

Plug-in hybrids are likely to generate most consumer demand by decade end, but the segment will comprise only 1% of worldwide engine production in 2020. By 2020, only .01% of cars are likely to be fuel cell electric cars (about 16,000 fuel cell units per annum).

By 2020, about 10% of all mass-produced vehicles will be driverless. Self-driving cars will eb designed to offer a safer form of motoring, reducing driver error risks. Emerging market OEM’s in the mass market segment are not likely to make the top 10 by the end of this decade. German automakers are set to continue premium car segment domination.

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