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India’s automotive market stands as a testament to the enduring power of tradition in an era of digital disruption. While many global markets embrace online car buying, Indian consumers remain loyal to the tactile, trust-driven experience of brick-and-mortar dealerships. A recent Urban Science survey1 , conducted alongside the Harris Poll, highlights this unique allegiance, even as automakers race to expand their physical networks across the country. This raises a thought-provoking question: why does the dealership model thrive in India, a nation celebrated for its tech-savvy population and booming digital economy? The answer lies in a blend of cultural, economic, and strategic factors shaping one of the world’s most dynamic auto markets.
The survey results – where Indian consumers stand Urban Science surveyed over 9,000 auto buyers across the U.S., Germany, UK, China, India, and Mexico. The findings reveal that most Indian buyers, like consumers in other countries, still predominantly prefer purchasing vehicles through a traditional dealership in-person, with trust and relationship-building playing pivotal roles. According to the survey, nearly 9 out of 10 car buyers in India are more inclined to visit a physical dealership, highlighting the critical importance of in-person visits in shaping their overall buying behavior.
The power of touch, trust, and personalisation
The roots of this behavior lie in a complex interplay of culture, commerce, and connection. In India, purchasing a car goes beyond mere transaction; it is a deeply personal experience, often tied to aspirations and emotional significance. Visiting a dealership offers more than just selecting a car—it fosters trust and builds meaningful relationships between buyers and sellers. For many Indian families, buying a car is among the most significant financial decisions. Beyond offering a tangible product experience, the human interaction at dealerships provides much-needed reassurance and a sense of security. This preference for physical dealerships is evident in the recent expansion plans of automakers such as MG Motors, Kia, Hyundai, Citroën ,and Tata Motors .
These companies have ramped up their brick-and-mortar presence across India to enhance customer convenience and accessibility. They are not merely expanding in quantity but also innovating the dealership experience. By offering personalised services, hybrid models, and state-of-the-art showrooms, these automakers are blending traditional hospitality, deeply rooted in local culture, with digital enhancements.
The strategic expansion boom
MG Motors recently announced an ambitious expansion of its dealer network across India, underscoring the enduring value of face-to-face interactions in the automotive market. Kia, Hyundai, and Citroën have followed suit. For these automakers, the goal extends beyond selling cars; it’s about understanding the unique dynamics of the Indian market, where relationships, trust, and convenient physical presence remain paramount.
At the same time, these brands are thoughtfully integrating digital tools, such as online booking services, virtual tours, and digital finance options. The focus, however, remains on crafting a seamless blend of traditional practices and modern options, ensuring the core element of trust—critical to driving customer loyalty—is never compromised.
A digital future or a hybrid evolution?
While traditional dealerships currently dominate India’s automotive landscape, the digital wave is steadily gaining momentum. Younger, tech-savvy consumers are increasingly browsing online before stepping into a showroom, and many appreciate the convenience of scheduling test drives or negotiating deals remotely.1 This shift suggests a future where dealerships and digital platforms coexist in harmony, creating a hybrid model that combines the strengths of both approaches. The future of car buying in India will likely involve digital tools enhancing, rather than replacing, the in-person dealership experience. Striking the right balance will be essential to meeting to evolving consumer expectations while preserving the trust and personal connection that traditional dealerships uniquely provide.
Conclusion: why tradition still matters
India provides a compelling blueprint for balancing the rising digital demand with a deeply rooted, trust driven car-buying culture. For Indian car buyers, tradition is not merely nostalgic—it’s a trusted approach to making major financial decisions. Purchasing a car often involves family, personal relationships, and a hands on experience that digital platforms cannot fully replicate.
Dealerships offer a space where trust is cultivated, deals are personalised, relationships are nurtured, and after-sales support all come to life—making them an indispensable part of the process. While digital platforms are poised to play a complimentary role, the human element remains the heart of India’s car-buying experience. By expanding their physical networks, automakers are aligning with this enduring preference for trust, tangibility, and personal interaction, which continues to define the market.
(Disclaimer: Amit Kaushik is the Managing Director, India of Urban Science, Inc. Views are personal.)
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The survey results – where Indian consumers stand Urban Science surveyed over 9,000 auto buyers across the U.S., Germany, UK, China, India, and Mexico. The findings reveal that most Indian buyers, like consumers in other countries, still predominantly prefer purchasing vehicles through a traditional dealership in-person, with trust and relationship-building playing pivotal roles. According to the survey, nearly 9 out of 10 car buyers in India are more inclined to visit a physical dealership, highlighting the critical importance of in-person visits in shaping their overall buying behavior.
Read by: 100 Industry Professionals
“>
India’s automotive market stands as a testament to the enduring power of tradition in an era of digital disruption. While many global markets embrace online car buying, Indian consumers remain loyal to the tactile, trust-driven experience of brick-and-mortar dealerships. A recent Urban Science survey1 , conducted alongside the Harris Poll, highlights this unique allegiance, even as automakers race to expand their physical networks across the country. This raises a thought-provoking question: why does the dealership model thrive in India, a nation celebrated for its tech-savvy population and booming digital economy? The answer lies in a blend of cultural, economic, and strategic factors shaping one of the world’s most dynamic auto markets.The survey results – where Indian consumers stand Urban Science surveyed over 9,000 auto buyers across the U.S., Germany, UK, China, India, and Mexico. The findings reveal that most Indian buyers, like consumers in other countries, still predominantly prefer purchasing vehicles through a traditional dealership in-person, with trust and relationship-building playing pivotal roles. According to the survey, nearly 9 out of 10 car buyers in India are more inclined to visit a physical dealership, highlighting the critical importance of in-person visits in shaping their overall buying behavior.The power of touch, trust, and personalisation
The roots of this behavior lie in a complex interplay of culture, commerce, and connection. In India, purchasing a car goes beyond mere transaction; it is a deeply personal experience, often tied to aspirations and emotional significance. Visiting a dealership offers more than just selecting a car—it fosters trust and builds meaningful relationships between buyers and sellers. For many Indian families, buying a car is among the most significant financial decisions. Beyond offering a tangible product experience, the human interaction at dealerships provides much-needed reassurance and a sense of security. This preference for physical dealerships is evident in the recent expansion plans of automakers such as MG Motors, Kia, Hyundai, Citroën ,and Tata Motors .These companies have ramped up their brick-and-mortar presence across India to enhance customer convenience and accessibility. They are not merely expanding in quantity but also innovating the dealership experience. By offering personalised services, hybrid models, and state-of-the-art showrooms, these automakers are blending traditional hospitality, deeply rooted in local culture, with digital enhancements. The strategic expansion boom
MG Motors recently announced an ambitious expansion of its dealer network across India, underscoring the enduring value of face-to-face interactions in the automotive market. Kia, Hyundai, and Citroën have followed suit. For these automakers, the goal extends beyond selling cars; it’s about understanding the unique dynamics of the Indian market, where relationships, trust, and convenient physical presence remain paramount.At the same time, these brands are thoughtfully integrating digital tools, such as online booking services, virtual tours, and digital finance options. The focus, however, remains on crafting a seamless blend of traditional practices and modern options, ensuring the core element of trust—critical to driving customer loyalty—is never compromised.
A digital future or a hybrid evolution?
While traditional dealerships currently dominate India’s automotive landscape, the digital wave is steadily gaining momentum. Younger, tech-savvy consumers are increasingly browsing online before stepping into a showroom, and many appreciate the convenience of scheduling test drives or negotiating deals remotely.1 This shift suggests a future where dealerships and digital platforms coexist in harmony, creating a hybrid model that combines the strengths of both approaches. The future of car buying in India will likely involve digital tools enhancing, rather than replacing, the in-person dealership experience. Striking the right balance will be essential to meeting to evolving consumer expectations while preserving the trust and personal connection that traditional dealerships uniquely provide.
Conclusion: why tradition still matters
India provides a compelling blueprint for balancing the rising digital demand with a deeply rooted, trust driven car-buying culture. For Indian car buyers, tradition is not merely nostalgic—it’s a trusted approach to making major financial decisions. Purchasing a car often involves family, personal relationships, and a hands on experience that digital platforms cannot fully replicate.
Dealerships offer a space where trust is cultivated, deals are personalised, relationships are nurtured, and after-sales support all come to life—making them an indispensable part of the process. While digital platforms are poised to play a complimentary role, the human element remains the heart of India’s car-buying experience. By expanding their physical networks, automakers are aligning with this enduring preference for trust, tangibility, and personal interaction, which continues to define the market.
(Disclaimer: Amit Kaushik is the Managing Director, India of Urban Science, Inc. Views are personal.)