Indian automotive industry has been badly hit by the lockdown due to the COVID-19 or the Coronavirus pandemic. April saw the lowest ever sales in history, ZERO sales. This pandemic does not seem to go any soon. Things will take a long time to get back to normal. But amidst this, the government decided to give some relaxations. So the automobile companies came up with something to boost the sales and it is the online car sales across India. But this has led to a very serious question. Will it kill the dealership business? Will it be the end of the showrooms? Let’s find out.
What was the scenario before?
Automakers have a network of dealerships spread across the country. These dealerships used to sell the cars for the companies through the showrooms where the car models are also displayed. Customers used to visit the showrooms for taking a look and test drive of the car. Then the booking of the car was done and the car was delivered to the customers after proper documentation. This whole process required a person from the dealer end, the sales executive.
What is the scenario now?
The lockdown led to companies coming up with a solution of selling the cars using their online platform. Customers need to go to the official booking website and select the model they want to buy. After that, the customers will have to pay a booking amount which differs according to the model. Then the car is delivered to the customer after completion of payment and documentation. Carmakers are making sure that the deliveries are contactless.
But does this mean that the dealerships will be no more?
No, this does not mean that the dealerships will be closed at all. The automakers will not be sending in the cars directly to the customers. They still need the dealership network for providing test drives to the customers and delivering the cars. Although some people will prefer buying the car online at this time, buying a car is not a small decision to make. People will surely want to see the car in person rather than watching online photos or videos.
So it is clear that the dealership network cannot be closed at all. The online cars sales in India is just an addition to the network that will only help in the growth of the dealer network of the companies. This will ensure that there is an increase in the customer base of the automakers.
So, don’t worry, dealerships across the country which lie in the green zones have already started their operations and more will be joining soon. Our Hon’ble Prime Minister, Narendra Modi, said that we will have to overcome this by maintaining social distancing. So it is clear if you are in the green zone, you can buy a car from the nearest dealership, just keep in mind to maintain the social distance.
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And for all the service-related issues, you can always rely on your car care partner, GoMechanic.
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