Covid-19: Hefty discounts can lure 64% customers back to showrooms, says study1 min read . Updated: 10 Jun 2020, 11:09 AM IST
- About 1,017 people, between the age of 18 and 55 were surveyed, of which 69% of potential buyers had either cancelled or postponed vehicle purchase plans due to the pandemic
MUMBAI: Hefty discounts of up to 20% can help win back 64% of customers who have either cancelled or postponed new vehicle purchases due to financial insecurities amid the covid-19 pandemic, according to the results of a survey conducted by RedQuanta.
Discounts on vehicles will also enhance the buyer pool by luring those who had no previous purchase plans, according to the study.
About 1,017 people, between the age of 18 and 55 were surveyed, of which 69% of potential buyers had either cancelled or postponed vehicle purchase plans due to the pandemic.
According to the findings, motorcycle customers are most likely to respond to the discounts with about 80% of those who have put off buying returning to showrooms and making a purchase.
Similarly, 68% of potential scooter customers and 61% of passenger car prospects with cancelled or delayed plans can decide to make purchases depending on discounts, RedQuanta findings suggested.
"Discounts, attractive financing schemes and good buyback offers will be major sales drivers in the coming quarter," it said.
As automakers and dealerships resume operations gradually, leading carmakers such as Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Mahindra & Mahindra Ltd (M&M), Tata Motors Ltd, among others, have rolled out aggressive schemes including 100% on-road vehicle finance, low equated monthly installments (EMIs) with flexibility of delayed payments based on moratoriums, and other benefits to lure customers back to the showrooms.
The report also pointed out that about 18% of people surveyed, who had no purchase plans, are now on the lookout for a vehicle. The report said that 52% of such people were looking out to buy a vehicle as they want to maintain social distancing and believe public transport is unsafe. About 24% of people now looking to have a new vehicle are doing so while anticipating stellar discounts.
The survey suggested that 32% respondents who were about to buy a vehicle before the lockdown will go ahead with their original choice with no change in their respective timeline or budget.
"35% car customers, 29% scooter and 21% motorcycle buyers say with conviction that they will materialize the same plans they had before the lockdown started," the report said, pointing that these numbers are inversely proportional to the price sensitivity of each vehicle segment.