India’s auto industry has seen significant growth over the last decade. Multiple new manufacturers entering the market and disrupting the landscape. With more vehicle manufacturers entering the picture, there arises a need for streamlining and organisation of the industry – be it passenger vehicles (PVs), commercial vehicles (CV’s) or the used car market. One brand – CarDekho has managed to become a pioneer in this space offering its customers a simple, hassle free, and informative experience to make the right choice when buying a car. Amit Jain, CEO and co-founder of CarDekho has been a judge on the popular show Shark Tank India. Storyboard18 caught up with Charu Kishnani, CMO of CarDekho Group to understand how CarDekho achieved the position it currently enjoys in the market, consumer buying patterns, how advertising has evolved in the auto sector and how Amit Jain as the face of the brand is playing out for CarDekho from a marketing point of view.
Edited excerpts.
What are some of the top-line trends that you expect will emerge in the used as well as the new car market in 2024? How do you plan to leverage them?
Staying ahead of trends in the automotive market is crucial for business success. In 2024, several trends are expected to shape the new and used car markets. Here’s how one can leverage some of these trends:
Video Content: We embrace video marketing to showcase our products and services. Creating engaging and informative videos that highlight the features of both new and used cars will be a priority. Utilizing video platforms such as YouTube and social media will help to reach a wider audience. Considering live streaming for events, product launches, or virtual showroom tours will add a dynamic touch to the marketing strategy.
Personalized and Targeted Marketing: Leveraging data analytics and artificial intelligence can help users understand the audience better. Creating personalized marketing messages and campaigns tailored to specific customer segments should be the focus. Utilizing customer data to recommend relevant products, and send targeted promotions, can enhance the overall customer experience that will be a key to building lasting relationships.
Immersive Mobile Experiences: Investing in creating immersive experiences for mobile users should be a priority. Developing mobile apps that provide features like augmented reality (AR) for virtual car tours, 360-degree views, and the ability to visualize customizations will enhance customer engagement. Incorporating interactive elements will keep users immersed and interested.
Voice Search Optimization (VSO): As voice search continues to rise, one can optimize their online content for voice queries. Focusing on conversational keywords and phrases that potential car buyers might use will improve the visibility of voice search results. Ensuring that the website and content are structured for voice search will make it easier for users to find relevant information using voice commands.
Short-Form Vertical Videos: Given the popularity of short-form videos, especially on platforms like Facebook and Instagram, brands can create engaging vertical videos. These can feature quick highlights of new arrivals, customer testimonials, or tips for buying used cars. Tailoring the content to suit the preferences of the platforms, the target audience frequents will maximize the reach automatically.
By aligning the marketing strategies with these trends, brands should aim to enhance their brand visibility, engage with the audience effectively, and ultimately drive sales in both the new and used car markets in 2024. Regularly monitoring industry developments will be crucial to staying adaptable and adjusting the strategies accordingly.
How has the used car market in India evolved in the last few years? What are some of the major changes you are witnessing?
Gone are the days when the term ‘secondhand’ car evoked frowns and disdain. In today’s modern India, characterized by confidence in its wants, needs, and aspirations, particularly in the realm of automobiles, this sentiment has shifted dramatically. India has firmly established itself as one of the fastest-growing automotive markets, propelled by a burgeoning middle-class population, increasing disposable incomes, and a growing preference for personal transportation.
While the new car market in India continues to thrive, the potential for growth in the used car market remains largely untapped. The digital revolution has been instrumental in reshaping business operations across various industries, and the automotive sector is no exception. Over the past two decades, there has been a significant shift from the traditional customer-to-customer (C2C) model to a technology-driven approach.
The once unorganized used car market in India is gradually transitioning into a more structured and formalized ecosystem. The emergence of registered online portals and operators offering warranties and guarantees has instilled confidence among consumers. Moreover, the influx of Original Equipment Manufacturers (OEMs) and New Car Dealerships into the organized used car market has heightened awareness and preference for certified pre-owned cars.
Certified pre-owned cars, having undergone meticulous inspection and refurbishment processes, now represent a viable option for consumers seeking quality and reliability. A few years ago, the new-to-used car ratio was 1:1.2, but it is now 1:2.2. When ten new cars are sold, the market has 22 used cars available for purchase. The average holding time of a new car has decreased from 5-6 years to 3 years.
This transformation has not only fostered a culture of convenience and transparency but has also underscored the inherent value for money offered by used cars.
Consumer buying patterns are evolving across categories. Is it the same for the automobile market as well? How is it happening?
The 2023 Global Automotive Consumer Study by Deloitte sheds light on notable shifts in the preferences of Indian consumers when it comes to purchasing vehicles. Despite concerns about inflation, a substantial 47 percent of buyers are now open to investing in vehicles priced between INR 10 lakh and 25 lakhs. Additionally, 28 percent of consumers are considering options below INR 10 lakh.
What stands out in this trend is the evolving mindset among Indian consumers, as they increasingly prioritize the overall experience of owning a vehicle over the initial cost. This marks a departure from the traditional emphasis on cost-conscious decisions, where factors like cost versus mileage traditionally held greater significance.
Delving into consumer priorities, the study reveals that the average Indian consumer places importance on factors such as product quality (62 percent), vehicle features (48 percent), and brand image (46 percent, particularly when transitioning from one brand to another). Notably, the survey also indicates a substantial interest in electric vehicles, with 57 percent of potential buyers considering EVs in the INR 10 lakh–25 lakh range and 20 percent in the under INR 10 lakh category.
Moreover, the study highlights a significant aspect of consumer behavior – around 55 percent of consumers are willing to tolerate a longer delivery time, spanning 4–12 weeks, for a superior and preferred vehicle choice. This signals a growing willingness among consumers to trade off immediate availability for an enhanced overall ownership experience.
Advertising in the auto sector has long been monotonous. We are only now seeing some freshness in ads. What marketing strategies does CarDekho undertake to gain a wider consumer base?
At CarDekho, we employ a multifaceted marketing approach, placing a strong emphasis on Search Engine Optimization (SEO) to elevate our online visibility. Our primary focus lies in driving organic traffic through strategic optimization of our website and content. We consistently stay ahead of the curve, leveraging our core innovation capabilities to excel amidst evolving trends.
Content marketing serves as another cornerstone of our strategy, involving the creation of high-quality and engaging content, including car reviews, comparisons, and news articles. Leveraging social media platforms such as Facebook and Twitter, CarDekho not only disseminates its content but also actively interacts with our audience. This approach aids in building a robust online community and expanding our brand’s reach to a wider audience.
Social media marketing is an integral part of our promotional efforts, with a robust presence on platforms like Facebook, Twitter, Instagram, and YouTube. Utilizing these channels, we not only share content but also promote our services and engage with our audience, creating a dynamic and interactive online space. Furthermore, our active participation in various automobile exhibitions and events, along with organizing our own events like “The Great Indian Car Mela,” showcases our commitment to offline marketing strategies, enhancing brand visibility and fostering direct connections with potential customers.
Additionally, our strategic partnerships with car manufacturers, dealerships, and other businesses contribute to CarDekho’s comprehensive marketing approach, providing added value to our user base. These collaborations strengthen our position in the market and contribute to the overall success of our marketing initiatives.
As it is in India, vehicle sales are normally at peak during the festive season. Does the festive season still dominate sales?
Festive seasons are considered to be the best-selling period for PVs—their sales zoomed 19 percent to 332,248 units in September compared to 279,137 units in the corresponding period in 2022, as per data released by the Federation of Automobile Dealers Associations (FADA).
Car sales saw a considerable spurt in 2022-23, a trend that had been continuing into the current financial year, helped by an increase in demand from the Covid years. PV sales grew 30 percent to 3.9 million in 2022-23, from 3 million in the previous year. According to FADA, car sales are also significantly up from the pre-Covid period, when 2.8 million cars were sold in 2019-20. For the first half of 2023-24, 1.8 million PVs were sold, a record of sorts.
Subsequently, we have just gotten out of the festive period in India. What were some of the key patterns that you noticed among consumers?
The Indian auto industry has witnessed impressive overall sales growth of 19 percent in the festive period of 2023, with vehicle sales reaching 3.793 million units. Last year, the Indian auto retail sales were registered at 3.19 million units. The Federation of Automobile Dealers Associations (FADA) recently released Vehicle Retail Data for a 42-day festive period (starting from the first day of Navratri and ending 15 days post-Dhanteras).
SUVs were the highest-demanded vehicles, and inventory levels for passenger vehicles remain a significant concern as OEMs continue to push further dispatch thus keeping the inventory rate at near all-time high levels.
How has Amit Jain’s appearance as a shark on Shark Tank and essentially as the face of CarDekho played out for the brand from a marketing POV?
Amit Jain’s appearance as a shark on Shark Tank has significantly impacted CarDekho’s marketing landscape, transforming its image and solidifying its presence in the minds of consumers. By embodying CarDekho’s ethos, Amit has become synonymous with the brand, personifying its values of trust and expertise. His prominent role as the face of CarDekho Group has not only elevated the brand’s visibility but has also enhanced its credibility, fostering a deeper connection with audiences.
Amit’s presence has lent a human touch to CarDekho, fostering trust and authenticity among consumers. This has led to increased top-of-mind awareness (TOM) and organic search growth, as consumers readily associate CarDekho with Amit’s expertise and credibility. Furthermore, his appearance on Shark Tank has provided invaluable exposure, amplifying CarDekho’s reach and influence in the market.
Overall, Amit’s role as the face of CarDekho has been instrumental in shaping the brand’s marketing strategy, reinforcing its values, and driving growth. Through his leadership and persona, CarDekho continues to stand out as a trusted authority in the automotive industry.
How has CarDekho’s association with the show Shark Tank India fared so far? What kind of response have you received?
CarDekho’s association with Shark Tank India has been nothing short of a resounding success. Since our partnership with the show, we have experienced an overwhelmingly positive response from our audience. This collaboration seamlessly aligns with one of our core objectives: to inspire and support aspiring entrepreneurs. It was this shared vision that motivated our decision to become a part of Shark Tank India.
Shark Tank has provided us with an unparalleled opportunity to connect with budding entrepreneurs from every corner of the country. By showcasing their innovative ideas and ventures, we have been able to empower them to pursue their dreams and make a meaningful impact in their respective fields.
Through our association with Shark Tank India, we have not only extended our reach to a diverse audience but have also nurtured various entrepreneurs by providing them with the necessary platform and resources to thrive. This collaboration exemplifies our commitment to fostering innovation and entrepreneurship, and we look forward to continuing our journey of empowerment through such impactful partnerships.