Many potential car buyers are delaying their decision to make their purchases as they see radio cabs and aggregators as a more convenient and cheaper option of commuting, according to a recent study.
As per a study conducted by Kantar Millward Brown, which covered a sample size of over 1,000 users, around 72 per cent of the possible car buyers have delayed their decision to purchase a car, 88 per cent felt that using a cab aggregator is cheaper than owning a car, while 86 per cent of the respondents felt cabs were more convenient.
The study covered key markets like Delhi, Mumbai, Bangalore and tier II cities like Nagpur, Jaipur and Coimbatore. All the respondents were either car owners or were planning to purchase a vehicle in the next six months.
As per the findings of the study, 73 per cent consumers felt that distance travelled in the self-owned car has come down leading to a decline in the servicing frequency of the car for about 65 per cent of the respondents.
Besides, 73 per cent felt that cost of servicing the car has also gone down, it noted.
"The cab aggregator services seem to be turning the automotive category from an aspirational one to a commoditised one," Kantar Millward Brown Executive Vice President Anand Parameswaran said.
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A category that used to be more about status seems to be shifting towards convenience due to the benefits that these aggregator services provide, he added.
"The benefits propel consumers to choose them (aggregators) over their own personal vehicles. Manufacturers no longer can focus on functional benefits to create demand, aspiration and status of owning a car and driving it will lead to higher usage," Parameswaran said.
The study further noted that for 59 per cent of the respondents, comfort and convenience is the most important factor while opting for a cab.
About 66 per cent of the respondents also felt that aggregator cabs had better service than regular cabs, making them more comfortable to sit in for long distances as well.
"It seems consumers have found an alternative to driving on their own with the emergence of aggregator cabs. With clogged roads, difficulty in finding parking spaces, the consumer is seeking convenience over pleasure of driving," Parameswaran said.
However, owning a passenger vehicle is still an aspiration for majority of Indians, hence getting reflected in the robust sales for the fiscal year ended March 31, 2018, he added.
"The consumer currently is happy to opt for both personal car and cab aggregator. It will be interesting to see if this equilibrium lasts long," Parameswaran noted.
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