AUTO STAKEHOLDER

Automakers adopt online marketing, sales strategies on COVID-19

… New-age consumers go digital on purchase decision

Automakers and dealers across the world including dealer outlets in Nigeria feeling the negative impact of the coronavirus pandemic and the hammering global demand for vehicles have turned to online marketing and sales strategies as part of measures to remain in business until the pandemic abates.

Since the outbreak of the coronavirus disease code-named COVID-19, many dealerships in Nigeria have either closed shop or are half-empty, with many of the marketing, sales and administrative staff asked by their respective employers to work from home as a measure to mitigate further spread of the global virus that has shut many economies down following the global lockdown.

On the global front, automobile companies such as Hyundai Motor India, MG Motor and Mercedes-Benz are turning to online portals to boost sales, expecting customers to make a slow return to physical showrooms once the lockdown is lifted.

MG Motor India’s online sales channel is scheduled to become operational by the end of the month. While Hyundai is accelerating the launch of its one-stop digital sales platform “Click to Buy.”, Mercedes-Benz, which currently sells pre-owned vehicles online, is adding new vehicles on its platform.

As much as a quarter of vehicle sales are expected to happen online by 2025. New-age consumers have already started drawing heavily on online information to make vehicle-buying decisions.

The spread of Covid-19 and associated preventive norms of social distancing will quicken the shift to purchases online, auto industry experts said.

“The coronavirus outbreak and the subsequent lockdown hastened our decision to opt for such a solution. We are expecting a profound behavioural change. We think more and more consumers would now start finding it more convenient to make purchases online”. MG Motor India President Rajeev Chaba said.

Many of the portals will allow customers to research vehicles, make bookings, schedule test drives, avail themselves of financing options and determine delivery dates.

All customer queries can be addressed via dealerships in real time and for customers who finalise purchases, delivery will take place once normal operations resume.

According to WS Oh, executive director in charge of corporate planning at Hyundai Motor India, “Digital models of retail and sales are garnering traction among buyers. Customers are now factoring in convenience to their purchase journey, even for products such as automobiles’’.

“With the coronavirus situation, this (online sales platform) might be a great option for customers who want to buy a car but do not want to go to any crowded area,” said SS Kim, managing director at Hyundai Motor India.

Indeed, auto companies such as Hyundai Motor India, MG Motor and Mercedes-Benz are turning to online portals to boost sales, expecting customers to make a slow return to physical showrooms once the lockdown is lifted.

As much as a quarter of vehicle sales are expected to happen online by 2025. New-age consumers have already started drawing heavily on online information to make vehicle-buying decisions. Customer queries can be addressed via dealerships in real time and for customers who finalise purchases, delivery will take place once normal operations resume.

The spread of Covid-19 and associated preventive norms of social distancing will quicken the shift to purchases online, auto industry experts said.

Rajeev Chaba, President, MG Motor India said the coronavirus outbreak and subsequent lockdown hastened the automaker’s decision to opt for such a solution. “We are expecting a profound behavioural change and think more and more consumers would now start finding it more convenient to make purchases online”.

MG Motor India’s portal will allow customers to research vehicles, make bookings, schedule test drives, avail of financing options and determine delivery dates.

MIKE OCHONMA

Transport Editor