Many businesses, big or small, are booming in the era of digitization. Manual tasks are being replaced by the wave of automation and the productivity is on the rise. But, if we look at the current state of automotive industry, the path seems dismal in recent times. One of the major auto industry trends this year is private taxi services becoming increasingly invisible from the Indian roads. Today, Uber and Ola have hired more drivers than ever, and are making the trend of ride sharing popular. There seems no limit to ride sharing opportunities for customers.
Is the trend of ride sharing and cab culture putting the auto industry in an odd position? Not really. The industry is on the verge of a potentially profitable change, and these factors are promoting the growth momentum.
#1 The Wave of Urbanization
These days, there’s the wave of urbanization with smaller towns witnessing skyscrapers overnight. As cities are growing, the demand for two wheelers and four wheelers are on the rise. Be it low-cost two wheelers or four wheelers in the luxury segment, different models are available to match the expectations of every sector.
#2 Easy Financing Options
Vehicles are purchased by consumers in India largely through bank loans. Nearly 75 to 80 percent of purchases for new vehicles are done through bank financing.
Because of affordable options and lower interest rates, buyers are more inclined towards buying vehicles of their choice. They can now procure their vehicles faster even when they are at the initial stage of their career. Buyers are spoilt for choice with different vehicle models and are getting quick vehicle loans to live their dream.
#3 FDI Effect
Name any major automobile industry player, and you will find their dealerships in India. It can be majorly attributed to the fact that there is 100 percent allowance of FDI in the automobile industry. Global big wigs in the automobile sector are setting up their manufacturing units in India to expand production and match up with the ever-increasing demand. Maruti, Hyundai and other car makers are investing heavily and setting up production units in India.
#4 Increased Affordability
The market for low cost models of two wheelers and four wheelers is high in India. Also, with the automobile industry in India becoming more competitive, global auto dealers are coming up with low cost models, which promise both comfort and safety. This is encouraging customers to buy new vehicles even with limited income.
#5 Infrastructure Development
While India has made remarkable progress in terms of new roads, highways and power plants, it is also giving the much-needed boost to the auto industry. The infrastructure development is contributing to the mobility in smart cities and imparting the competitive advantage to this sector. Subsequently, the demand for two wheelers and four has increased in a proportionate manner.
#6 Tech Tools Boost Dealerships’ Performance
Global automobile dealers are making a stronger presence in the Indian market, all thanks to the tech boost they are getting in the form of dealership management software. This technology tool helps auto dealers manage their inventory, sales and customer relationship efficiently. At the same time, they can reach out to the prospects through the use of advanced features of dealership management software and convince them to invest in two-wheelers and four-wheelers depending upon their demographics and psychographics.
You have many prominent dealership management software in the market, which are preferred by leading auto dealers. One such popular dealership management software is AutoBooom, which assists in stock report, sales report, part sales report, along with vehicle sales, service and spares modules.
Dealership management software is also contributing to the improved service in terms of car repair, servicing and maintenance. Workshops using dealership management software can provide timely service to customers, making life easier at both ends.