Neither emotion nor vanity motivates people to buy cars, it’s primarily the need to transport oneself and family in them that drives purchase. A Deloitte study, ‘ Driving through the Consumer’s Mind – Considerations for Car Purchase ’, found that other important factors influencing car sales in India were after-sales service at the dealership, reliability and resale value. Even fuel efficiency is not high on the list.
Most car buyers shortlist 3-5 brands before making a decision. SUV and mini-van owners consider more brands than consumers who look for hatchbacks and sedans.
For repeat buyers, a car’s technology and larger space were the ruling factors. Unlike first-time buyers, repeat buyers look to upgrade. In their case, a more sophisticated product is the primary requirement. For them too, the reliability, dealer services and resale value are of significance. Affordability comes only fourth in importance for both first-time and repeat buyers.
The average time between purchases of two cars is 6-7 years. Men dispose of the older one after it accumulates 55,000 km or more, women change them after 45,000 km. In the years to come, Gen Y and women drivers will steer the growth in purchase of cars for personal use, at the cost of other vehicles.
A small but growing trend is that of urban consumers preferring to stay with a single brand. Familiarity, loyalty programmes or the OEM (original equipment manufacturer), or even the aspirational value it offers at that time could be the reasons, says the study.
Asked to rate their own choice of brand, owners were reasonably happy with it, the study found. Over 1,800 respondents in India were surveyed in 2013 as part of a study across 19 countries.