Fuel efficiency and safety innovations are the most important consumer considerations while purchasing a car for Indians, according to a survey. Globally too such considerations were valid, it said.
The latest annual KPMG `Global Automotive Executive Survey’ 2015, now in its sixteenth year, found that for the next five years, respondents see consumers still fixated on traditional product issues that will drive their purchasing decisions.
Two hundred automotive executives participated in the global survey between July and August 2014.
The survey found that the industry in 2014 and 2013 saw fuel efficiency as the most important consideration followed by enhanced vehicle lifespan, safety innovation and ergonomics/comfort (67 per cent, 53 per cent, 52 per cent and 49 per cent respectively).
For India, the survey re-emphasized that quality service experience during the purchase transaction is extremely important to Indian consumers.
Brazil, Russia and India are expected to export more than a million vehicles to other markets in the next three to five years.
``The Indian automotive industry is likely to face further pressure on two fronts: 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, the product lifecycles are getting shortened, there are frequent changes in product ownership and likely emergence of new product segments,’’ Rajeev Singh, Head of Automotive sector, KPMG in India, said in a statement.
India’s second hand car market is also going to see phenomenal growth and will be one of the key success factors for players who enable easy exchange to increase their market share. ``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,’’ Mr. Singh said adding, ``there is also likelihood of increased prominence of women customers.’’
While 59 per cent of respondents believed market entry barriers and government interventions in India will decrease, Indian auto companies are expected to invest in new plants and module/platform strategies.