Nissan to sell cars online – what’s the opportunity ?

nissanJapanese car major Nissan which sells a range of vehicles in India has recently announced that the company will make its entire product line up available for purchase via internet. The idea is to simplify the purchase cycle and allow customers to buy Nissan cars over the comfort of online shopping.

As per The Economic Times, the company said that customers will now be able to book their cars by making payments online by using their credit cards. Once, a customer makes the payment the car will be delivered to the cacustomer by their nearest Nissan dealership when ready.”

Commenting on the initiative, Hover Automotive India (Nissan’s national sales company) Director – Marketing Nitish Tipnis said: “Today most car buyers go online before making a decision so using the internet is a logical extension of the purchase cycle.” He also mentioned that the company, with its online presence, offer the convenience of online booking coupled with attractive deals.


Why Online ?

According to a study by the Boston Consulting Group done earlier this year, 56% of Indians who have purchased a car have access to the Internet. Of these, 22% used Internet before buying a car to do preliminary research.

During the purchase decision of most of the high-involvement products, internet plays an important role. As per a report released by Nielsen that over 65% of global respondents consider that Internet plays an important part when it comes to purchasing a car.

Online car market in India – an overview

Over the years, the car market in India has evolved by leaps and bounds and has become one of the largest car markets in the world.

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Since the evolution of online vehicle market in the last few years, several third party automotive companies have started offering their services in the industry including Cartrade.com, IndiaAutoMall.com, CarWale.com, Autotrader.com, IndiaAutimobile.com and more.

Given that online sales play a major role in the retail market of India, most of the major car makers in India – except Skoda and Tata, who recently started their eCommerce operations – do not have an online sales presence but rather use internet to convert online queries made by customers into sales, through their offline dealerships across the country.

India has one of the biggest automotive market in the world, and websites such as eBay and olx.in have tapped the opprtunity well. According to Amarjit Batra, Country Manager, OLX India, Vehicles (Cars+Bikes) form a majority of the ads on Olx. For eBay india, eCommerce evolution has given much sweeter results as the company claims it manages to sell over 250 vehicles per day across 50 cities.

The trend of automobile manufacturers going online seems like a logical step, given the fact that when it comes to buying vehicles a large number of consumers do rely on the internet for research and pricing. But whether or not this help car manufacturing companies to escalate the overall sales – is yet to be discovered in time to come.

To contact author, email at devesh@wirefootindia.com

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  • Viren Patel

    Good Thought as apart from Internet awareness and online research by custometr another reason people shall go for it is due to bad experience people have with car dealers right from delayed delivery and other concerns…
    Looking forward how this Work flow is implemented online for User.

    Best Wishes