Check out how the Indian auto industry is affected due to the COVID-19 and what are the proposed solutions to tackle the challenges and boost the demand.
We have covered all challenges related to the consumers, OEM, and dealers in the Automative industry and proposed MarTech solutions.
4. CONSUMER CHALLENGES
WEAK ECONOMIC SCENARIO
Low customer sentiment due to job losses
& reduction in income levels
SHRINKED CONFIDENCE LEVELS
Market uncertainty around the prices &
missing physical touch in the journey of
interested buyers
MARKET SLOWDOWN
With the decrease in freight movements &
usual business, consumers are not sure
when the business will return to normal
FEAR OF CONTRACTING THE DISEASE
Even after the lockdown, the threat of
Covid-19 is expected to affect buyers
resulting in lower footfalls in showrooms
due to fear psychosis
6. OEM CHALLENGES
DISRUPTED SUPPLY CHAIN
The just-in-time model has been severely
impacted due to supply chain / labor
disruptions
HIGH IMPACT ON PRODUCTION
With labor movement, manufacturing
shutdown, lack of parts, the production has
taken a major hit
LIQUIDITY
OEM with low liquidity and minimal
operating cash flows risk running higher
credit lines
DROP IN VEHICLE SALES
With decline in customer footfalls, change
in customer behaviour & the “lockdown”,
the sales have dropped significantly
8. DEALER CHALLENGES
CONVERTING BOOKINGS TO SALES
While online enquiries have increased in the past
few weeks, they’re not getting converted into sales.
A typical conversion takes more than a month
nowadays compared with 15 days earlier
DROP IN NEW VEHICLE SALES
With decrease in customer footfalls, customers
might defer investments in new vehicles with
focus shifting towards essentials due to COVID-
19 crisis
DECLINING WORKING CAPITAL/
LIQUIDITY
Liquidity crunch due to blocked working
capital & loan tightening
MARKET TRENDS
Deferment of new launches & the predicted slow
growth rate for the next quarter
10. MARKET SHIFTS
Huge Cash Flow
Pressure
Consumer
Sentiments
Delayed Recovery
Expected
Suspended
offline sales
OEMs, Suppliers,
Manufacturers are
experiencing cash
flow pressure due
to declining
revenue
Sluggish
customer
demand &
shrinking
purchasing power
With logistics
disruptions to
continue & with
customers not in the
investment mode, the
sector will show a
delayed recovery
Suspended offline
marketing
activities &
additional losses
due to the
discontinued
operations
Minimum Freight
Movement
No-one is transporting
white goods or new
cars. With freight
movement down and
cash the key to fleet
survival, order
cancellations are
mounting
11. MARKET OPPORTUNITY
Increased
Online Sales
Government
Support
Rural Economy Spares &
Services
Concerns about
visiting showrooms
will lead to
online/digital sales and
marketing processes
(manpower and
overhead cost savings)
Government
investments to
increase to boost
economic growth
along with expected
relaxation in tax to
boost demand
Rural economy may
kick-start growth
because of healthy
crop production &
expectation of a
normal monsoon
Surge in demand
for spares &
services due to
pent up demand
during lockdown
Subscription
Services
This simple and
customized framework
gives the customer the
freedom to enjoy
services with flexibility
& can drive
consideration
14. ● According to new Auto Trader research, over half (58%) of consumers say they’re still interested in buying a
new vehicle, but are waiting until later in the year. It’s critical, then, that dealers and brands keep these
prospects engaged until they feel more comfortable to make a purchase
● During this period of re-evaluation, now is the time to look at overhauling the traditional dealership
infrastructure, moving towards business models that are powered by digital experiences and online sales
● With the majority of the staff working remotely, automotive brands have plenty of time to train their people
on how to use new technologies and solutions more effectively
● In the long run, a centralised, digital approach will help brands better democratise their data, increase
collaboration/efficiency across the board, and allow them to scale much quicker than before
● Example - Hyundai’s “Click to Buy” launch has helped them receive over 7 lakh visits & 15,000+ registrations in
the two months
15. ONLINE-OFFLINE INTEGRATION
OMNIDIRECTIONAL ONLINE TRAFFIC
ATTRACTION
● Under the outbreak of the pandemic, the
traditional offline distribution experience is
hit hard, while online channels such as auto
media, live broadcasts, have brought more
traffic
● Car companies & dealers will need to create
online content to gather momentum &
create solid leads
● Live broadcast may become an opportunity
for future auto marketing
ADAPTING TO TECHNOLOGY
● Companies which adapted Artificial
Intelligence (AI) & Virtual Reality (VR) are
better prepared for any future disruptions
● With Virtual Technology users can
participate in online virtual car shows
through various head mounted & sensory
devices, breaking time & space restrictions,
and enjoying immersive test driving
experience
● Investment in technology upgrade will not
only help companies tide during such crisis
but will yield rich dividends in the long term
16. DIGITAL AD
SPENDING
● As per a report by Bain, automotive OEMs in
India currently allocate 10-11% of their
marketing budgets to digital media, as
compared to 37% in USA, 54% in China
● With the increase in internet penetration &
the COVID lockdown, consumers are shifting
their purchase journey online
● Automotive OEMs need to take a decisive
action to increase the proportion of their
digital marketing budget to about 25-30% to
leverage the opportunity of $250-300 million
17. FOLLOW THE
CUSTOMER
● Most customers make a brand choice long
before they visit a dealer. This highlights the
importance of discovery & consideration in the
purchase journey
● Accurate & predictive content targeting can be
done through digital channels to influence
consideration
● Digital channels provide OEMs the ability to
target “segments” with the right marketing
content relevant to the stage of the purchase
process
18. POWER OF
ANALYTICS
● Leveraging internal data from various sales &
marketing touchpoints, along with external
data available through search & social media
● With the growing amount of data from
different sources, it is critical to invest in a well-
designed data & technology solutions such as
a CRM to fully harness the power of digital
technologies
20. DEALERSHIP FOR THE FUTURE
PERSONALIZED
CUSTOMER
OUTREACH
Moving from a view
based on vehicle to a
customer-based view for
marketing will help
dealerships grow share
of wallet
EXTENSIVE
DIGITAL
TRAINING
Management of digital
leads including lead
scoring, response-time
optimization, and after-
hours touchpoints
INTEGRATION
WITH SALES
CONSULTANTS
To create a more
seamless customer
experience with
fewer hand-overs &
ultimately resulting
in a shorter overall
sales process
IN-DEALERSHIP
DIGITIZATION
Providing all available
customer data at the
fingertips of the sales
consultants to enable a
highly customized sales
interaction
21. DEALERSHIP FOR THE FUTURE
OPTIONAL TEST
DRIVES
Test drives for customers
who ask for them while
following social
distancing and basic
hygiene guidelines.
DOOR-to-DOOR
DELIVERY
Service and sanitise
vehicles on the
doorstep to bring in
hygiene
transparency with
touchless delivery,
thereby reducing
service centre footprint
DIGITAL
BROCHURES
To create a more
seamless customer
experience with
fewer hand-overs &
ultimately resulting
in a shorter overall
sales process
VALUE-ADDED
SERVICES
Move from one-time
engagement to
deeper ongoing
customer relationships
by offering value-added
services like pay-per-use
insurance and
smart maintenance
22. FINANCIAL SOLUTIONS
INSURANCE
EXTEND SERVICE
Schemes like Corona
insurance or
extended insurance
could go a long way
in addressing fear of
jobs & driving
consideration
LONG TENURE
EMI SCHEMES
Providing the
customer an option
of customizing EMI
payments every year
offers additional
convenience &
enhances benefits
EXTENDED
WARRANTY &
FREE SERVICE
PERIOD
Extended warranty &
servicing can also be
used to provide a
good after-sales
experience to drive
consideration
REVIVAL OF
DEMAND
Reducing prices could
be a way but evaluate
discount policies to
balance volume and
market share,
profitability & brand
image
24. MARTECH SOLUTIONS
2. VIDEO PERSONALIZATION
Personalized video leverages information about the
customer such as demographics, psychographics,
behavioral segmentation and event sequence
analysis that would help in building kick-off
relationships with the customers, increase their
engagement and the possibility of conversion
A personalized video is any video content that’s
customized and relevant to each one of your
audience groups, be it prospects, customers, or
influencers.
25. Greater possibility of
conversion
A better understanding
of your target audience
Improved brand affinity
and
brand loyalty
A shorter and more
efficient
sales cycle
Deeper relationships
with customers
Higher ROI from
marketing and
advertising
20%+
Increase in
viewability
WEATHER
30%+
Increase In
Engagement
CITY
LOCALISATION
TIME OF DAY
20%+
Increase In
Engagement
MARTECH SOLUTIONS
2. VIDEO PERSONALIZATION
26. MARTECH SOLUTIONS
6. ONLINE
MEETINGS
To interact & engage
with potential buyers,
who may transact as
soon as the market
returns to normalcy
via webinars,
podcasts, etc
3. INNOVATIVE
VIRTUAL TOURS
To drive consider &
engagement - a
series of videos or
still images along
with other
multimedia features
5. ONLINE
BOOKING
Making the whole
buying process
seamless & digital to
ensure smooth
conversions
4. LIVE VIDEO
Live videos to
overcome the
traditional offline
journey &
replacing it with
interactive & real
time experience
27. MARTECH SOLUTIONS
10. CHATBOTS
The most visible
implementation of AI
can be seen through
the incorporation of
chatbots as they help
you to take care of all
your customer needs
around the clock
7. NEWSLETTERS 9. EMAIL
AUTOMATION
Perform an efficient
lead generation by
email marketing
using an email
automation software
with a multimedia
approach
8. SOCIAL MEDIA
ENGAGEMENTS
Using social media
effectively helps you
push content to
prospective clients to
nurture them better
Designing your
newsletters to include
the latest happenings
in the automotive
industry to engage
customers & build
brand perception
28. BRAND MUST-HAVES
KEEPING IN TOUCH
Maintaining connect
with customers through
relevant
communication via
social media platforms &
other digital mediums
STAYING RELEVANT
& HUMBLE
Understanding the
impact on various
stakeholders is
critical along with
contributing back to
the society through
engaging initiatives
and communication
STAYING AGILE &
ADAPTIVE
Understand the
importance of
adapting new
mediums of
communication &
being digitally sound
BRAND & DELIVERY
PROMISE
To talk the language
of honesty &
transparency & to
reassure the customer
that the brand is here
to stay & will stand by
them during this
pandemic
29. Let's Talk
We're open for questions
and comments.
Presented by Amura Marketing Technologies
Contacts :
Vikram Kotnis
Email – vikram@amuratech.com
Contact - +91 90110 57742
Siddhartha Kinare
Email - sidkin@amuratech.com
Contact - +91 77588 39109