How Phygital Journeys are Redefining the Car Buying Experience in India

The Indian used car market is undergoing a significant transformation, driven by the rise of phygital journeys—a seamless blend of physical and digital experiences. This approach is revolutionizing how consumers buy cars, making the process more transparent, efficient, and customer-centric.

1. The Shift to Organized Players: The past decade has seen a shift from an unorganized to an organized market, with digital platforms playing a crucial role. Online marketplaces equipped with AI-powered platforms are making the buying and selling process more transparent and efficient. This shift is evident as organized players like Maruti True Value and Spinny capture a larger market share, reducing the dominance of unorganized dealers.

2. Enhanced Consumer Experience: Phygital journeys offer a comprehensive car buying experience. Consumers can browse through a wide range of options online, book test drives, and even complete the purchase process digitally. This convenience is particularly appealing to tech-savvy customers who prefer minimal physical interaction. The integration of AI in these platforms ensures personalized experiences, from virtual inspections to tailored financing options.

3. Rising Market Potential: India’s used car market is poised for exponential growth, expected to reach 10 million units by 2028. The market, valued at $32.44 billion in 2023, is projected to nearly double to $73 billion by 20281. This growth is fueled by rising disposable incomes, shorter vehicle replacement cycles, and a growing preference for personal mobility.

4. Government Regulations and Trust: The Indian government’s regulations promoting transparency and professionalism in the used car sector have instilled greater trust among consumers. These regulations, combined with the organized sector’s emphasis on certified pre-owned cars and comprehensive warranties, are driving the market’s growth.

In conclusion, phygital journeys are redefining the car buying experience in India by merging the best of both physical and digital worlds. This transformation is not only enhancing consumer satisfaction but also driving the market towards unprecedented growth.

For more insights, refer IBB Report 2023