Fuel efficiency, safety important for Indians buying car: Survey
Fuel efficiency and safety innovations are one of the most important consumer considerations, while purchasing a car in India, an industry survey showed Thursdayautos Updated: Jan 08, 2015 17:45 IST
Fuel efficiency and safety innovations are one of the most important consumer considerations, while purchasing a car in India, an industry survey showed Thursday.
The latest annual global automotive executive survey by consulting firm KPMG said that Indians still consider fuel efficiency and safety innovations as the most important considerations while purchasing a car.
The survey re-emphasised that quality service experience during the purchase transaction of cars is extremely important to Indian consumers.
On the industry front, survey said the Indian automotive sector is likely to face further pressure from regulatory norms and new product ranges.
"While on one front the regulatory norms are likely to get tougher on safety, emission norms, fuel efficiency, manufacturing defects and product recalls, on the other hand, the product lifecycles are getting shortened," said Rajeev Singh, head of automotive sector, KPMG in India.
"There are frequent changes in product ownership and likely emergence of new product segments," he added.
Singh predicted that there will also be a phenomenal growth in the second-hand car market in the country.
Investment-wise, the Indian sector is likely to see major influx in a couple of years.
"The industry is also likely to see huge investments in the next couple of years. It is one of those distinctive markets, where there is a huge potential at both ends of the pyramid; the small cars and high end luxury cars. There is also a likelihood of increased prominence of women customers."
Majority of the survey respondents (59 percent) believed that the market entry barriers in India will decrease.
On the product front, the survey said that the Indian automobile companies will be investing in two powertrain technologies over the next five years.
The survey analysis showed that 33 percent respondents believe that companies will be investing in making the internal combustion engines smaller and more efficient.
"Indian auto companies are expected to invest in new plants and module, platform strategies, while there are no plans for investing in battery (pack/cell) technologies," the survey said.
Survey respondents also pointed out that India will export more than one million vehicles in the next three to five years, along with countries like Brazil and Russia.