Consumers prioritizing car ownership post-lockdown, 74% want own vehicle: Survey

Purchasing cars is likely to become a priority for many consumers after the lifting of the national lockdown, with 74 per cent of respondents leaning towards owning their vehicle, according to a survey by consultancy firm EY.

The survey, which covered a varied demographic mix of more than 1,100 respondents, also found that 57 per cent of first-time buyers have highlighted they were likely to buy a pre-owned vehicle, while 57 per cent of existing car owners were likely to upgrade their car.

On the other hand, financial/economic uncertainty was the major reason for 26 per cent respondents resisting/deferring vehicle purchases owing to the prevalent pandemic, as per the survey.

With the coronavirus pandemic induced national lockdown being lifted gradually, potential buyers are increasingly leaning towards online interactions for inquiry generation, communication, negotiation, and payment, EY said.

“Further, they would also prefer integration of value-added services through digital channels such as used car evaluation and financing,” it added.

In terms of preference of vehicle type, the EY survey found that 37 per cent of buyers were likely to buy within the hatchback segment, while 29 per cent preferred the compact segment (sedan/SUV).

The survey also found that 56 per cent of first-time buyers who plan to purchase a car prefer their vehicle for daily commute post the lockdown as against 57 per cent opting for public transport or shared mobility before lockdown.

EY India Partner and Automotive Sector Leader Vinay Raghunath said, “The ongoing COVID-19 crisis has likely fueled the first-time buyer customer segment for entry-level new cars and used cars.”