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Dynamic Shift Will Change Trajectory

Tech-led transformation is pushing mobility on a growth path that will see India’s auto sector among the top three in the next four years

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The Indian auto sector is projected to reach over USD 166 billion by 2027. Currently, among the top five in market size and net worth, the sector will be among the top three globally by 2026. The industry, post-pandemic, has witnessed exponential growth in demand for personal vehicles. While four-wheelers are the prime focus, other segments are booming and facing their setbacks as well. 

As the Indian automotive industry increases production, it is expected to account for 65 million new jobs. Lately, the Indian auto industry has been evolving and adapting at a rapid pace. 

Firing on all engines

India has been doing it all, from strengthening the automotive trade to the promotion of electric cars and more. Electric vehicles in India are still at a nascent stage but are witnessing strong growth with consistent support from the public and private stakeholders. 

The transformation of the auto industry is not limited to new cars only, the used car sector has also seen significant growth during this period. Consumers today have become safety conscious and want to invest in personal mobility in an attempt to move away from public transportation. With variable factors acting as a catalyst in the diminishing supply of the new cars industry, the pre-owned car industry is witnessing exciting reformations in consumer preferences. More and more people now prefer purchasing pre-owned cars instead of new ones, especially the millennials and GenZ, leading the new to used car transactions ratio at 1:1.5. 

Changing trends

According to the recent Ipsos report released by Cars24, demand for pre-owned cars has doubled across hatchbacks, sedan and luxury segments. In addition to this, nearly 40 per cent of the respondents said they will prefer to buy their next car online. The Indian pre-owned car buyer isn’t restricted by gender, limited finances, or confined to the metros anymore. With organised players entering the space, standardisation gaps are being fulfilled by brands to ensure a rich, seamless and interactive, end-to-end online buying experience for consumers. 

Technology has not only shaped the automotive industry but also showcased a vision of where India will be in the coming years and the synergy between technology and auto companies is picking pace.  It is safe to say that the automotive industry is in the midst of a fundamental tech-led transformation in India. 

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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automobiles auto sector Magazine 21 May 2022

Ruchit Agarwal

Co-Founder & CFO, Cars24

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