Is going online a solution for selling and servicing cars?
The Coronavirus might have changed life for the entire planet but one thing has not changed, our penchant for catchphrases. The latest one made popular by political leaders, scientists and media columnists is ‘the new normal’; as in we will all have to adjust to it once we have dealt with the viral scourge. Or whether we go back to work with social distancing as a norm even as the virus continues, something will be the new normal. The problem is that neither you or I have any clue about what this ‘new normal’ will be. However, the Indian automotive industry, days removed from a month of zero sales, believes that it will involve a lot more digital activity.
Of course, this brings up the question about how on earth you can buy an expensive product, which requires registration and licenses, possibly even paperwork for loan sanctioning online? After all, it is one thing to buy a phone, yet another thing to buy, even select a car online. I spoke to Mercedes-Benz India’s Vice-President of Sales and Marketing, Santosh Iyer, to get some perspective. Mercedes-Benz India has launched a very comprehensive online campaign called #MercFromHome during the lockdown. “First thing you need to understand is that there is still a major physical element as the car has to be registered by a dealer but we are trying to do a few things quite differently online. One of them is understanding that many people search online for cars after work hours, and it is important to engage with them and not just give them the information. So our online concierge is operational till midnight. The second is that we have to give full transparency with regards to deals and stock levels. So if you want a silver E220, you will know which dealer in your area has one and also the best deals. Earlier, buyers used to call up multiple dealers to see what sort of deals they could get. Now they can just go online.”
Iyer admits that while Mercedes-Benz’ solution, developed by Roadster Technologies is a start, it will take some time to finally do the entire process online, which will need some regulatory changes. “But why won’t someone buy a product that he or she is fully aware of online? It may not be the case with a new product but something like the C-Class or E-Class that has been around for a year, you might have tested your friend’s car or driven one abroad. And while you have some customisation options, most of our mainline assembled products are fairly standard,” Iyer told this columnist.
In an earlier chat Hyundai India’s Director of Sales and Marketing, Tarun Garg expressed the opinion that while some customers would go in for online purchases, for mass market brands at least, online platforms will play a critical role in service and customer retention. “There will be a lot more transparency in service. You will be able to see the prices of components and consumables as well as labour online. You will also be able to see the position at the service centre and make all your bookings through the website or app.” In addition, with Hyundai India’s latest service promise, which plans a pick up and drop facility, you may not need to meet anyone from the showroom at all.
Working from home and online tests have become a reality for many of us during the past six weeks, a surreal world which we never thought would exist. Computers have enabled social distancing for those of us who can afford them as well as stable high-speed data. Things will not be the same again, as Iyer admits, “We don’t know how we will recover. Will it be a ‘V’ curve like the government wants or a ‘W’ curve or even a ‘L’ shaped flatline. I do know that different parts of the country will respond differently and the adoption of online buying will be dissimilar in divergent markets in India. There is no ‘one size fits all’ solution to the country but this is the direction that we were headed in before the lockdown and the past few weeks have only reaffirmed that belief.”
On that front, it is hard to disagree with Iyer, the world was going online. A few years ago, one questioned why anyone would buy a two-lakh rupee computer or television online but over the past few days, online purchases are the only way one can ensure social distancing. And car companies had already started to ramp up their online portals, moving beyond information to offering second-hand certified cars as well as test-drive booking engines. In many other major automotive markets, the entire process from booking a car to getting loan sanctions and applying for registration can be done online, India is actually slightly behind the curve. One expects government policy, particularly with regards to loan sanctioning and registration to also evolve in India. The pandemic has not changed the direction that the automotive industry was moving towards, it has just accelerated it.
