The Business Bytes
TBB BUREAU
NEW DELHI, NOV 16, 2021
Consumers are increasingly researching and booking tyres online to be delivered and fitted at their doorstep as per a CarDekho survey.
The survey to understand the Tyre buying behaviour of consumers found that millennials are ready to pay a nominal fee for the convenience of purchasing tyres online and having them delivered at home to avoid exposure during the Covid pandemic.
It is interesting to note that close to 20% of all respondents irrespective of age and geographical location opted for a complete online journey, i.e. they will research and purchase online. Over 60% of respondents across age groups prefer the convenience and are ready to pay and get their tyres delivered at their doorstep. This is a big change from the past where consumers visited dealers and discussed their best options and got the new tyres fitted at the dealer’s store. More than brand or price, safety is now the top priority when it comes to tyre purchase. However, while most respondents have gone online for research and educating themselves before their purchase decision; but when it comes to fitment, more than 80% respondents would still visit a local workshop or a dealer to get their tyres fitted.
The survey also revealed that among the various tyre brands, most of the consumers are aware that CEAT, JK Tyres are providing tyre fitment services at home.
The findings highlighted that since increasingly consumers are shifting to online purchase, tyre brands need to integrate digital and technology at every step of the consumer journey.
Online research is becoming the prime source of the consumer’s tyre buying and fitment process. This implies that tyre brands need to create content that will educate and engage customers while enabling the complete digital journey. The survey findings showed that video has become a critical component as a source of decision enablement across all age groups.
The survey was conducted across India on in-market tyre researchers, through a telephonic conversation with 56% of the respondents in the age group of 18-34 yrs.
As per ICRA, domestic tyre demand is expected to increase at a CAGR of 7-9% in units between FY2022 and FY2025. As for 2021-22, the agency expects demand to grow at 13-15%. According to the Automotive Tyre Manufacturers Association, Indian tyre Industry generated an estimated revenue of Rs 60,000 crore ($8.5Bn) in 2019-20 with exports estimated at Rs 12,840 crore ($1.8Bn). The Indian tyre market size reached a volume of 179 Million Units in 2020 and according to IMARC Group, it is expected to reach a volume of 211 Million Units by 2026.
