Online sources fast becoming influencers of car purchasing decisions
ONE OF the world’s largest online auto sales platforms recently reported that online sources—including car manufacturer sites, dealer sites, general Internet searches, and online classifieds—are now the Philippines’ strongest influencers when it comes to vehicle purchasing decisions.
According to Carmudi’s “Report on the Booming Automotive Industry in Emerging Markets,” 66.7 percent of car dealers in the country are more focused on advertising their listings through the Internet while online classifieds are also seen as a great way to advertise car listings, with over 46 percent of car dealers surveyed are currently advertising their car listings on online classifieds.
The same report noted that 33 percent of car dealers in Philippines, aware of the potential that social media has, participate in or maintain a social media site.
The report is Carmudi’s first automotive white paper that provides a global view of consumer purchasing behavior and automotive sales across emerging countries from Asia, Africa, Middle East and Latin America.
“The findings in this report are the results of Carmudi’s quantitative surveys conducted online with both car buyers and car dealers, and in-depth interviews with industry influencers throughout the Philippines,” explained Subir Lohani, managing director of Carmudi Philippines.
Strongest in Asia
With the Internet and mobile penetration significantly growing in emerging markets, the report said the rate of moving the car shopping experience online is beginning to mirror that of Western markets.
In fact, when it comes to new cars, purchase intent is strongest in Asia where 65 percent of respondents say they will buy new cars in the next two years, compared with 7 percent who plan to buy used cars.
In the Philippines, one of the top 5 countries in Internet and mobile penetration, almost 80 percent of car buyers use the Internet to conduct research on a car before making a purchase.
Moreover, as the fastest-growing automobile market in the Asean region, close to 30 percent of car buyers report using the Internet to conduct research on a car before making a purchase.
“Thanks to this development, over 73 percent of car dealers in the Philippines reported an increase in car sales over the past 12 months, while only 26.7 percent posted a decrease,” according to Lohani.
Good opportunity
He added this development is a good opportunity for Carmudi Philippines to launch the white paper listing in the Philippines “as global auto sales are now increasing, and the level of Internet and mobile penetration as well as country’s economic productivity are also increasing.”
Lohani further explained: “The report also mentioned that 28 percent of Filipino buyers were influenced by the Internet when purchasing their cars. Car manufacturer sites, auto expo and Carmudi Philippines each helped 25 percent of the customers in reaching their decision in buying a car.”
Dealer sites with actual visits (18.7 percent) and social media (15.5 percent) are the other forms of online influences.
Fastest-growing market
The Asean Automotive Federation, reporting on the first half of 2014, noted that the Philippines is the fastest-growing automobile market in the region, ahead of Singapore, Malaysia, Indonesia and Vietnam.
This is probably due to the country’s economy that grew 6.1 percent in 2014, and is expected to reach around 7 percent by the end of 2015.
“The healthy and sustainable economic growth, coupled with strong consumer purchasing power, the Philippines is increasingly becoming an attractive prospect for car manufacturers,” Lohani added.
This has resulted in the automobile industry’s stellar performance throughout last year (vehicle sales rose 30 percent to 234,747 units from 181,283 units in 2013) and early 2015 (first quarter of 2015 sales already reached 62,882 units, breaking the 60,000-unit record for the first time).
Founded in 2013, Carmudi’s worry-free and efficient car shopping experience is also available in Bangladesh, Cameroon, Congo, Ghana, Indonesia, Ivory Coast, Mexico, Myanmar, Nigeria, Pakistan, Qatar, Rwanda, Saudi Arabia, Senegal, Sri Lanka, Tanzania, United Arab Emirates, Vietnam and Zambia.