NOVEMBER 20228THE RISE OF AUTOMOBILE E-COMMERCE STARTUPS -commerce has revolutionized how businesses operate in India. From $46.2 billion in 2020, the Indian e-Commerce market is projected to rise to $188 billion by 2025. It is anticipated to reach $350 billion by 2030. India's e-Commerce sector is anticipated to grow to 111 billion and 200 billion US dollars by 2024 and 2026, respectively.An increase in internet and Smartphone usage is largely to blame for the industry's expansion. Automobile sector couldn't remain untouched from it. The automotive industry has changed significantly over the last several decades, with use of technology scooters, cars and its spare parts are now available on e-Commerce platform.Automobile e-Commerce refers to the buying and selling of vehicles and spare parts over the internet. An e-Commerce sale is often done in coincidence with physical sales. For example, a new car is sold on a showroom, and its aftermarket parts are purchased on an auto parts e-Commerce platform.Automobile merchants are adopting an increasingly omnichannel strategy for selling, whereby customers may use both physical and digital channels to make an informed purchase, similar to many other digital commerce industries.How the Automobile Industry is Shifting Gears OnlineThe automobile industry, traditionally being retail-focused auto industry has had to adapt fast to changing consumer needs, after pandemic. In 2020, two-wheeler demand increased while people's desire to visit actual showrooms decreased. This made the transition to an online marketplace for vehicles more urgent. OEMs (Original Equipment Manufacturers) and dealers made the decision to adopt a digital business model.However, unlike many other digital commerce sectors, the auto industry is using an omnichannel strategy. Physical and digital channels are offered to customers for purchase. The vehicle ecommerce sector has a huge future ahead of it because to a prospective client base made up of millennial and Gen Z, who prioritize convenience and quick delivery above all else.The EV companies like OLA Electric and Bounce made the decision to pursue a `Digital first' go-to-market approach, and they saw a spike in online bookings. As a result, established companies like Hero and Bajaj joined the trend in the automobile industry by expanding their offline presence to include online shopping.Benefits of Automobile EcommerceThe automobile ecommerce stores are beneficial for both the customer and businesses and can help increase revenue across the entire value chain.1.Personalized Customer ExperienceWith an e-Commerce business model, the dependency on salesperson is reduced, benefiting the automobile company and dealers to provide better customer experience. Customers can now simultaneously explore cars and compare brands in showrooms, browse product information and product pages, and even order auto parts. The automobile ecommerce platform manages and keeps an eye on everything.2.Customer Base ExpansionTraditionally, the car dealerships primary focus is the local market. However, ecommerce platform eliminates eEditorial Exclusive By, Avinash Barik, SI StaffWith an e-Commerce business model, the dependency on salesperson is reduced, benefiting the automobile company and dealers to provide better customer experience
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