Market Perception and Future Perspectives
With/ Post Covid-19

June, 2020

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Perspective of Car Market
Post Lockdown

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Car is the most admired partner for daily transport as well as
occasional long distance leisure trips.

Daily / Regular Usage of Car

Leisure/ Trips with Car

Mumbai – Shirdi 250 KM

Delhi – Manali 537 KM

Kolkata – Mandarmani Beach 174 KM

Bangalore – Mangalore 350 KM

Chennai – Coimbatore 500 KM

Over and above the daily work related city commute, attending parties, family get together or goingfor shopping are the key usage of the car; car has been constant companion on road trips to hills,beaches, native places, religious destinations with family and friends

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3Car owners can’t imagine life without car. Suffices emotional as well asfunctional benefits being associated with own car.

SafetyAmbitionLove
FortuneComfortTensionLess

HasslefreeConvenie
nceFreedom
Partner
FamilyMemberOwnChildOwn Life
SecondHome

Having a car allows a person to move freely – a true sense of more convenience, comfort, safety
and it builds an emotional attachment.
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Post lockdown, consumers are likely to avoid public transport to reduce
the risk of infection, hence travelling in own vehicle will increase.

Mode of transportation
before/after the lockdown

Reason for buying motorcycle/ car
Driving can reduce chance ofBefore
lockdown

Afterlockdown

51%

infection
I feel commuting is more flexible with50%

own vehicle

Own Car29%

30%Public transport is not safe

Metro/Train
Taxi/
Ola/ UberBusAuto/Rickshaw

41%

27%

49%

Entire family can travel together in
own vehicle without having to32%
26%

21%
17%

33%

depend on public transport
Vehicles will have attractive prices/23%

lower finance costWill prefer electric/ hybrid cars more
over petrol/ diesel cars as they help

23%

17%

12%

keep pollution lower which has…
Other

5%

Base – All (546)
Q. Which of the following product(s) you are planning to purchase once thelockdown period is over? (Multiple Answer Question)
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Base –Car/motorcycle
intender (78)

Q. Why are you planning to purchase your own Car/ Motorcycle/ Scooter/ Moped?
Source: Intage Report “How COVID-19 is changing the consumers”, 20205

Car owners adjust new normal life without going out by car during theCovid-19 lockdown period. Frequency of driving car will be decreased.

Changes in Car usage frequency
Before/After the lockdown

Activities Engaged at HomeDuring Lockdown Period

Beforelockdown

Afterlockdown

Daily /RegularUsage

Every dayNot dailyLeisure/Trips

Severaltimes
a yearVery few“Will not drive so much after lockdown. Don't to travel
everyday for going to office because of work from home.
Not friends meet, not going to cinema halls, not going to
any restaurant for a while.”

Car owners fit their lifestyle into new normal life without car;•••Communicating via online tools with family/ friends
Enjoy entertainment at home
Enjoy cooking instead of going to restaurant

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6Consumers try to save money and live with less because of economic
downturn.

Activities impacted/affected for lifestyle
Savings for future

55%

Increase the work pressure and stress49%

Make us learn to live with lessExpenditure due to increase in the cost of food andessential items
Decrease frequency of/Defer going out to crowded
places like malls, markets
Increase the stress for meeting/achieving thebusiness targets

42%
33%
33%
32%

Loan repayment

31%

Make us look for deals/savings more

31%Children's' education in the current academic year

30%

Increase the stress of losing the job

30%

Base – All (546)

Q. Which of the following activities will impact/affect you after the lockdown period is over. Please select all the options that are applicable.
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Source: Intage Report “How COVID-19 is changing the consumers”, 20207

Perspective of car market post lockdown:

While the dependency of own car will increase to avoid the risk ofinfection, future purchase got prolonged due to reduction in usage andfinancial situation.
Needs of new car purchase

Restraints for new car purchase

Increased dependency on owncar as compared to shared cab
services (e.g. Ola, Uber etc.)
or other public transport post
Covid-19

Reduction in usage of car owing
to “Work From Home”,restrictions on socializing during
and post lockdown
Peoples changing mind set
towards more savings“I need an additional car for my wife.
Post lockdown, she need a car while I
go to office. The new car can also be
used for other household activities aswell…”“the main factor (not purchasing
new car) is for saving money
during this time…”

Future purchase tend to get prolonged due to Covid-19

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How “Digital” Incorporated
into Purchase Journey

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9Online information are more reliable and help in narrowing down theoptions, however, typical consumers always consult with peer groupsand visit showroom before final decision of purchase.
Comparison &narrowing down options

Typicalpurchasejourney

OnlineTest drive

Finalize-[Media/ Advertisement]• New model and variety – fresh launch• Look and feel of driving, terrain, viewof car from different anglesOffline

Visit Dealer[Word of mouth in peer groups]• Real time usage experience on
mileage, servicing related including
spare parts, driving comfort, overall
passenger comfort, features, roadgrip, braking efficiency etc.;
sometime test drive[Online]• Complete information basket –technical specifications, colors, cost,designs, mileage, pros and cons etc.
• Videos, comparison between models
and reviews/ratings

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[Conversation with staff]• Technical specification –reverification andservicing related[Test drive]• Real touch andfeel[Documentation]• Financial related
information –down payment,EMI, interest

Offline information is a MUST
“We buy many things online but can’t buy
car online…have to go and physicallycheck…

“We compare so many things at dealership –space, boot space, head room, leg room”

10Online Journey 1– Different consumers follow different steps

SearchModelonGoogleConsumer 1

Checkdetails

CompareConsumer 2

OpenonlineCarcomparewebsiteOEMSearch

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ModelSearch

VariantSearch

MileageSearch

11Online Journey 2– Different consumers follow different steps

Consumer 3GoogleModelModelon OEM
WebsiteCheckVideos

360oExperie
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ColourSearch

Request Test
Drive12

It is difficult for car owners to adopt online sales because they put
importance on a personal touch at the showroom. However, online
service will improve customer experience.
Comparison &narrowing down options

Typicalpurchasejourney

Visit Dealer

Test drive

Finalize-Online already plays
an important roles

Potential areas that online will improve customerexperience post lockdown[Booking dealer/test drive]
Waiting long time at dealershipleads dissatisfaction of customer.
Online booking provide hassle
free and reduce risk of infection
at dealer.

[Online finance]
Customers expect online
financing will make them easy
to compare the all options andto receive transparent
quotation.

Customers are still willing to have personal touch with vehicle and dealer“There are a lot many things which you need to look at before
buying a car and more importantly develop a good relationshipwith the dealer…. ”“It’s all about experience for the entire family from time ofplanning to booking to getting the delivery.”
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Customer are willing to move over to online aftersales because they
expect the convenience of online/ contactless service.

Perception about Online After Sales

Out of 10 respondents

Positive

Negative

Online will make them free fromtroublesome with services

Suspicious towards service is the bottle
neck to adopt online

Benefits are…

Concerns are…

• Convenient – Easy at door step

• Chances of cheating about what done andwhat claimed• Saves time• Hassle free and tension free• Ensure cost at company norm
• Safe because of contactless“Toyota has an app on which you can book service andrequest them to pick up and deliver the car…I have beenusing this service and they are always on time….”• Should be done in front of eyes
• No damage be made to car• Doubt about parts replaced“Service centre need to be transparent with things which
they have repaired or replaced…we should be able to track
our vehicle at the service centre”

To enhance contactless service, communication to reduce concern on the service
quality is necessary.
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Technology and Features

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Safety features are perceived as a next level basic necessity

Top Preference

Second Preference

Biometric Recognition

Fatigue Sensor

In-built Camera

Air bags in all seats
Cruise Control

Blind Spot Detector Parachute Mode High Beam Protector“In rainy season, it is difficult to drive because the side mirror does give clarity in viewing. If we have feature likeside camera outside and in the inside screen, we easily observe the view and drive more safe...”“Biometric features are very useful now-a-days as it can protect the car from theft. This also gives confidence
that the car is safe and can be parked anywhere even during night time…”“Driving at night time is difficult specially on highways as opposite side car’s headlight falls on eyes and it createsblindness for some seconds. The front glass of the car can be a equipped with a high beam protector for better
safety…”
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16Post Covid-19, health concerns will evoke the desire for new carfeaturesFeatures’
Requirement
driven byCovid-19

Air Quality Sensor

Automated Sanitizer

Car Air Purifier

Health Monitor System“Similar to airbags, OEMs should focus on suitable safety hygiene features in post Covid scenario...”Remote Operation

Thick Foam at Roof

Automated Car CoverPuncher less Tyre

Powerful LEDLampApple Car Play

More Boot SpaceGPS Enabled Car

Features’
Requirement
for the future

Camera for Visibility
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17Traditional mind-set about Electric Vehicles has changed over time. Ifinfrastructure is provided the way, India will become a green country.

DriversBarriers• Govt. Policy and Push for Adoption• Insufficient Infrastructure• Sustainability• No/Limited Charging Stations• Ecological – Pollution Free City

• No Charging Option at Home as
Staying in Condominium• Willingness to Adopt New Technology• Lack of Service Centers

EV• Battery – the Future in Industry• Much Lower Running Cost
• Feature driven Safe Future• Low Range – Limited Mobility

Positive outlook towards other alternatives
sources including usage of other renewableenergy sources in automobile industry• Slow in Adoption Trends• Heavy Battery – Dangerous

Increase
Intention ofEV

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Connected features are new age technology and mostly welcomed as itis related to convenience as well as safety.

Remote Operation
Personal Safety inEmergency

Convenience

Driving Comfort

Vehicle Tracking System(Geo Fencing)

Car Safety

Theft Security

Connected Car
Detailed understanding about the feature is yet to be built.
However, overall technology behind the Connected feature itself is an‘EXCITEMENT’.
“Yes, I have heard about the connected car. It‘ is very interesting feature and you will be always
connected to your car. It will save life in case of emergency and make driving very comfortable…”“Connected feature will help to be track your car all the time. It also helps to protect your car whileparking in remote locations and also, it helps to prevent the car from being theft…”

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Car Leasing is perceived as a good alternative for commercial segment,
but not for personal need as the charm of owning your own car will bemissing.

Perception about leasing of car

Convenience& hassle free••••••

Can change the car whenever wish
Safety and hygiene factors
Maintenance free
Recent trend in market
EconomicalTension free

“Safety & hygienic purpose record
maintained consider leasing cars. This
best offer
for economic and nomaintenance…”

Barrier toexpand
leasing service

No charm of ownership••••

Can’t select accessories basis own wish
No modifications can be done on the car
Not sure about safety features present in thecar
Commercial rental purpose“If I go for lease car, then at the end, I havenothing. On the other hand if I purchase new
car on instalment, then after 2 -3 years I havemy own car and my own assets. Feeling ofowning a car is something different thanrenting/leasing a car.…”Awareness of renting /leasing a car like the facilities provided by ‘Zoom car’ isthere.
However, detailed understanding is lacking about the conditions and benefits
attached to it.

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20Perception towards
Country of Origin

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Indian cars adding safety as one more dimension. Japanese cars
continue to be considered as superior in technology and hence reliable.

TechnologySuperior Engine Quality

Low MaintenanceReliability for domestic majors comes from brand familiarity; while in Japanese cars reliability is on account ofsuperior technology which gets further coupled with engine quality leading to low maintenance as also build quality
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Mixed reaction towards Chinese brands. They offer technology andinnovations, however Covid-19 evoke negative sentiments.

Not
Trustworthy

Short Lifecycle

Money Wastage

Poor Quality

Use and Throw

Innovative

DesignImpressive

TechnologyCompetitive

Increase negativity towards Chinese origin products due to Covid-19“I would never buy Chinese cars. Chinese cars I wont’ prefer, not only for Covid -19
situation but even before or after Covid also...”“They will definitely get huge impact due to Covid-19. People won’t buy & support any
Chinese products anymore...”Copyright© 2020 INTAGE INDIA Private Limited All Rights Reserved.

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SummaryCopyright© 2020 INTAGE INDIA Private Limited All Rights Reserved.

24Market Perception and Future Perspectives post Covid-19

Purchasing new car tend to get prolonged
While the dependency of own car will increase to avoid the risk of infection, futurepurchase got prolonged due to reduction in usage and current financial situation.
Financial scheme to boost their intention is a key factor for the market.

“Digital” improve customer experience
Online information are more reliable and help in narrowing down the options, however,typical Indian consumers always consult with peer groups and visit showroom before
final decision of purchase. While it is difficult for consumer to adopt online shopping ina short–run, digitalization will provide the solution at dealership or service, hence will
improve customer experience.

Driving safety + Hygienic
Safety features are perceived as a next level basic necessity which includes air backand advanced security features. Due to Covid-19, the health concern will evoke thedesire for new car features post lockdown.

Car Air Purifier
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Health Monitor System25Appendix

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Outline: Quantitative research•

Methodology

Online survey through a structured questionnaire•

Online questionnaire link was developed by INTAGE India and sharedwith consumers across India using internal database/connections

Target•No respondent criteria

Area

•

India (Nationwide)•

Overall reaction on the current situation•

How to spend time during the lockdown•

Changes in shopping behavior during the lockdown•

Changes in life in the future after the lockdown is liftedInterviewLength•

Approx. 20 minutes (Approx. 40 questions)

Timing•16th April - 24th April, 2020

Number ofsample•

N= 546

Key
InformationArea[*No specific quota assigned]

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Outline: Qualitative forum•

Methodology

Qualitative WhatsApp forum•

Respondents are recruited across metros (Delhi, Mumbai, Bangalore,Chennai, and Kolkata) using internal database/connections

Target••Male aged 30 to 40 years-oldOwner of B-High Hatch or Sub 4m SedanArea•

Delhi, Mumbai, Bangalore, Chennai, and Kolkata•

Covid-19 affect on their mobility life•Economic slowdown affect their future purchase decision•Perception to contactless point of sales/ service•

Expectation of featureInterviewLength•

8 days (3-4 questions per a day)

Timing•11th May - 20th May, 2020

Number ofsample•

10 respondents (5 B-High Hatch / 5 Sub 4m Sedan)

KeyInformation
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[Contact]
Ryosuke Nakamura
Director
E-mail: nakamura-ry@intage.com

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