Building Brand Love in India's Evolving Automotive Ecosystem Where Interiors, Safety and Inclusivity Drive Success
17 Mar 2025 | 716 Views | By Apeksha Jain, Ipsos India
The Indian automotive landscape is undergoing a seismic shift, driven by evolving consumer preferences and market dynamics. As the industry grapples with the aftermath of COVID-19, a newfound emphasis on safety, and the burgeoning popularity of SUVs, automotive manufacturers have been forced to pivot strategies to keep up with the ...
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The Indian automotive landscape is undergoing a seismic shift, driven by evolving consumer preferences and market dynamics. As the industry grapples with the aftermath of COVID-19, a newfound emphasis on safety, and the burgeoning popularity of SUVs, automotive manufacturers have been forced to pivot strategies to keep up with the increasing pace of competition.
How can OEMs ensure a new launch is successful? Any new product lifecycle begins 4-5 years before its launch. Hence, there is an imminent need to look beyond today and understand the trends that will shape the future. Especially in a market like India, where things have been quite disruptive.
Let's first see the big changes that have impacted the Indian Automotive landscape in the last few years:
With EVs, Hybrids, CNG gaining share, albeit slowly - means there is competition beyond the choice of the model. The democratization of features, and multiple powertrain options add to the number of choices, with most competing models having similar offerings available. The choices have become tough, and it is important for brands to stand out.
In the erstwhile years, there was a dominance of a few popular models and brands, making it easy to offer a unique proposition, typically differentiated on exterior style, to capture the attention of the buyers. Creta was launched at a time when its closest competition was Duster, Ecosport and Scorpio - each model with an extremely differentiated value proposition.
Apeksha Jain, Director, Automotive and Mobility Development, Ipsos India
Today, the world is not such. The SUV space continues to branch out into Entry SUV, Mid SUV, 7 seater SUVs, and the new 'micro' SUVs, the space created by Tata Punch. With over 35 models competing to take share and holding their own in the market, it becomes increasingly challenging for the brands to continue to launch new products successfully and help differentiate amongst the clutter.
So, what are the factors likely to break the clutter and create a success story in this intense competition?
Let's break down what research says about customers and their changing preferences:
What do interiors mean- Space, the plushness and quality of fabric, Utility space, the quality of material used in the interiors- all are important.
Interiors also become a way for people to decide which car suits their needs the best. What gives them a sense of comfort for the driver AND the passenger (yes, this is equally important now).
Does exterior design play a lesser role then? No, the body shape, ground clearance, still matter. However, with most models being competitive at creating acceptable designs, the final preference then goes to something that can help the car stand out as a space that one feels 'premium' in.
This is further amplified by the trend where people don't mind paying a premium for things that are often considered small luxuries. The mass-premiumization and democratization of features being a testament to the fact above.
This was 2013. Nearly 12 years later, we are today in a time where people want 6 airbags even in small hatches. And this phenomenon is not limited to metros, but higher in tier 2 markets, where almost everyone wants a car to offer 6 airbags. It is important to note that most are unlikely to choose a variant that will offer 6 airbags, but it is important for that option to be available. It creates an illusion of a car being 'safer' than others.
With the airbags becoming mandatory based on the BS VI norms, there are other aspects as well that define safety- the NCAP ratings, the 'heavy feel' of the body and features like EBS, hill hold assist also contribute to a car being safe.
Safety is no longer a desire, but a clear contributor to final choice.
Now, while this may sound strange given the intense competition with multiple brands across segments available, how is it that customers only consider 2-3 models at the time of decision making?
The answer is simple- brands start forming in the customer's mind much before the actual choice is made. There is enough and more information available, even at the passive consideration phase, and as people move closer to the decision-making cycle, they know sufficiently enough about the brands and what each choice offers.
What does this mean- it means that it is not just important to engage people at the time of decision making but important to start influencing those as well, who may yet not be active considerers. Decisions are no longer subject to information received only at the dealership. To ensure a genuine consideration for YOUR brand, the journey begins much earlier.
It is not only important, but essential to create brand engagement and brand love even amongst the passive and the influencers in the category.
The templated car launch ads, with car shots highlighting some specific features may not cut through with the audience at hand, to whom this information is available at the click of a button. It is extremely important for brands to engage beyond, create an eco-system in which a buyer wants to participate and be a part of.
Those definitions may not apply anymore. There is a gravitation towards personalization, 'what is in it for me' mindset.
Implication for marketers: A one-India strategy with a common celebrity representing the brand across regions creates a much lesser impact. Vernacular and regional content that emulates the emotions of the people in the language they feel in, has shown to increase preferences for the brands in question.
Brands have started doing more and more to engage women buyers, whether it is via events curated for women, or including women in advertising, communication, and even creating a more welcoming dealer experience by including more women in staffing.
However, the fact remains, these still remain mostly after-thoughts for driving engagement POST a vehicle is ready. There is still very limited work and understanding amongst OEMs on how to create products that are more women friendly.
While the priority remains male buyers, and understandably so, given the majority of sales are still skewed towards the male population in the country, there needs to be a focus on making the vehicles more inclusive.
The ergonomics of the car suited to both genders, seat belt placement, seat height adjusters, inclusion of features that make the experience more inclusive will definitely help brands stand out.
A lot of OEMs in European, American markets offer subscription models for car features, where everything is connected to the cloud and the customer pays for 'need to use' features only. This trend may soon become a reality for India as well.
And it is unlikely to be limited to features. It may apply to the design language of cars as well. Too flashy, over the top designs may not find appeal for the audience of tomorrow. In a lot of ways, people are likely to move back to basics, where the focus will be more on functionality and personalization without a need to load the car with features that make the entire ownership experience cumbersome and high maintenance.
The Indian automotive market is at a pivotal juncture, characterized by rapid changes and evolving consumer expectations. OEMs are challenged to innovate continually and align with the shifting preferences that define today's buyers.
To succeed, manufacturers must embrace a forward-looking approach, anticipating future trends and integrating them into their product strategies. As consumer focus shifts towards safety, personalization, and inclusivity, the ability to offer a differentiated, value-driven proposition will be key to standing out in the cluttered market.
However, the most important of this being a shift towards a 'brand mindset' rather than a 'product mindset'. Yes, traditionally, successful brands have been the ones with successful products. However, most OEMs have cracked the code for success in a product. So, it will become extremely important for the brands to go beyond, thinking about an eco-system that provides engagement, creates a sense of belonging in a world where the competition is intense, and products are becoming more and more commoditized.
Apeksha Jain is Director, Automotive and Mobility Development at Ipsos India. Views expressed are personal.