Majority of Indians willing to spend for connected car technologies: Study
Two out of three respondents in India are willing to spend up to ₹50,000 for connected technologies in cars, with a growing interest for these vehicles, as it provides customised experience as well as generates efficiency, according to a report by consultancy firm Deloitte.
Automotive sector's next evolution is likely to be hinged on digitalisation in the wake of restricted public transport and growing demand for personal mobility, said Deloitte India's report on #Connected cars and OEM outlook in India.
In terms of spending for advanced technologies, India is amongst the few countries where the willingness to spend is fairly promising, it said.
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Deloitte's Global Automotive Customer Research for 2020 shows that "two out of three Indians are likely to be willing to pay up to ₹50,000 for connected technologies", Deloitte India said in a statement.
From September through October 2019, Deloitte had surveyed more than 35,000 consumers in 20 countries to explore opinions regarding various critical issues affecting the automotive sector, including the development of advanced technologies.
The report said convenience and technology will become an important component of product purchase where consumers are unlikely to hesitate to pay a bit more if required.
"Almost 65 per cent of survey respondents said they would pay up to ₹50,000 for ability to connect to the internet to facilitate infotainment and personal communication activities," it added.
In the interest of staying connected digitally all the time, Indian consumers are expecting more digital services, both inside and outside the car, the report noted.
Even diagnostic test of a vehicle, including air filter/fuel filter change, can now be reported via smartphones with no discrepancy for consumers, it added.
Connectivity will help bridge the gap between consumer expectation and OEM product manufacturing plan, it said, adding personalisation and focus on consumer is expected to lead the game of product manufacturing.
The report further said connected technology will bring data insights and monetisation opportunities to original equipment manufacturers (OEMs) but they need to embrace data security by addressing issues of – how to monetise data without compromising it and who owns and manages the data.
"As per Deloitte Global Automotive Survey, 80 per cent respondents did not mind sharing personal information with OEMs or third parties if significant value could be received. However, several cyber risks, including personal information loss, vehicle theft, critical safety feature manipulation, and vulnerable mobile application security arise from increased connectivity," it said.