Car buyers open up to subscription model

With the coronavirus pandemic bringing a change in consumer mindset, a majority of potential car buyers (69 per cent) in India are open to subscription-based vehicle ownership, the highest among global consumers, according to a study by Deloitte.

Indian consumers have also shown a strong inclination towards digital and technology adoption with 81 per cent of them preferring connected cars, owing to the benefits and convenience that comes through smartphone connectivity, as per the 2021 Global Automotive Consumer Study by Deloitte.

The percentage of consumers who are somewhat or very interested in a subscription that allows access to different models from the same brand stood at 69 per cent in India followed by China at 60 per cent, South Korea 45 per cent, Japan 27 per cent, US 26 per cent and Germany 23 per cent.

"Consumers in India and China are also more willing to pay for access to a vehicle subscription service compared with people in Japan, Germany, and the United States," it added.

Deloitte India Partner and Automotive Leader Rajeev Singh said the automotive industry took the COVID-19 pandemic as an opportunity to open up a new world of possibilities.