The impact of Internet on the Indian Automobile Industry

India is witnessing an exponential growth in its overall economy in recent times. The favourable growth trajectory of Indian economy is so high that it is expected to emerge as the third-largest economy of the world by 2030. The Indian government is keen to develop its economy by introducing various development programmes and initiatives to boost the industrial sectors.

India’s domestic automotive industry has seen a progressive transformation in the last few years. Triggered by changing consumer demands, increasing working-age population, rapidly changing technology and the growth of e-commerce players; India’s automotive industry is burgeoning with lots of scope and opportunities to grow at a faster pace.

According to a report by Internet and Marketing Association of India (IAMAI), the number of internet users in India can cross 450 million by the year 2020. It says that internet penetration is at 60% in the urban India. This showcases the increasing level of online connectivity amongst the Indian population. This has also enabled the industry players to connect with their customers directly using their own web platforms.

Due to enhanced internet penetration and abundance of multiple channels on the internet, businesses can easily connect with their consumers for reviews, feedbacks as well as assisting them with services policies. Internet has a big impact on all the industrial sectors including the automobile industry.

The impact of internet on automotive industry of India is significant, as most of the consumers are looking forward for services from online platforms. The people are focusing on individual research before buying a car or a motorcycle by reading online reviews, comparisons as well as quality-based analysis.

A consumer’s purchasing decision largely depends on their own perspective and observation rather than the advertisement. Internet is loaded with web portals that provide information such as new car sales, car maintenance & servicing, second-hand car sales, attractive offers on limited cars, vehicle insurance, etc. These portals are not only helping the consumers but also, they have given a better tool for the industry to showcase their vehicles and its attributes.

An account of the impact of online web portals on the automotive industry in India-


Internet is paving a way for the automotive industry to get standardised through online integration. It helps to maintain a transparency between the consumers and the automobile brands. Consumers are more focused on a better deal with quality services which has pushed the automotive players to standardise their communication system on the internet medium.


Internet helps the industry players to access a huge amount of data by analysing and tracking customer preferences and automobile usage. This data acts as a significant component which is turned into a corporate asset for the automobile industries for strategizing their consumer approach. It helps in customer acquisition, retention and improvement of quality services.

Web analytics provide efficiency in all aspects of automobile servicing focused on customer satisfaction. Automotive producers can easily assure timely delivery to their valuable customers giving them a better experience.

Price Benefits

Price is one of the most influential factors that brings people on the internet to search for options. Products and services related to automotive sector have a wide range of prices that alters in different regions of India. Consumers are more focused upon finding out the best price on which they can purchase the desired car or service related to it.

Online web portals use innovative ways to provide customer benefits. They are becoming more upfront and transparent in terms of price to lure their target consumers. Attractive discounts are offered on several purchases with added services like insurance, car servicing & maintenance as well as spare automotive parts.


Customers are feeling more convenient on the internet due to abundance of information and options to choose amongst desirable choices. They are easily accessing the web portals and learning about the desired vehicles without visiting any showroom or workshops.

Online web portals are focusing on providing more convenience to their consumers by offering services like- free pick and drop, loan and EMI facilities, insurances, etc. While people are feeling more convenient with such service, the automobile brands are able to boost their sales using the online web portals.

The Road Ahead

It’s interesting to know that India is the largest tractor manufacturer, second largest two-wheeler manufacturer, 6th largest car manufacturer and the 8th largest commercial vehicle manufacturer of the world.

Internet is contributing to the automobile sector of India on a large scale due to the emergence of various automotive based online web portals. The industry is set to see a boom in the future as the rural population of India is going to bring more demand for automotive, and internet will play a significant role in it.

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