‘CaRoad’ Market Is King

The CaRoad (a term coined by me) market is a huge growth market. Today, there is a significant shift from air and train travel to private vehicle car travel for intra-city and inter-city travel. Whether for vacation, pilgrimage, or business, this movement away from public transport towards personal car travel has redefined mobility. Hence, the term CaRoad—and this market is now the new king in mobility.

During the initial days of Covid-19, personal vehicle and car sales experienced drastic declines worldwide:

• China: A drop of up to 71% in February 2020.
• United States: A decline of 47% in April 2020.
• Europe: A massive drop of 80% in April 2020.
• India: Also saw huge declines in car purchases.

However, since December 2020, the CaRoad market has not only recovered but also witnessed significant growth in India.

The growth of car sales in India since December 2020 has been remarkable:

• Tata Motors: Sales increased by 84% from 12,800 in December 2019 to 23,500 in December 2020.
• Hyundai: Achieved a 25% growth from 37,900 in December 2019 to 47,400 in December 2020.
• Maruti Suzuki: Registered a 15% increase from 120,000 in December 2019 to 140,000 in December 2020 across various brands.
• Toyota: Showed a 14% rise, from 6,500 vehicles in December 2019 to 7,400 in December 2020.

These growth figures reinforce the belief that the CaRoad market is King.

• Car buying has surged, as reflected in December 2020 figures.
• Car dealerships and showrooms are witnessing brisk sales.
• A major behavioral shift has occurred, with an increasing number of individuals opting to own new vehicles.

According to consumer behavior trends, the aspiration to buy a new car is driving Indian consumers to participate wholeheartedly in the CaRoad market. Not only is the CaRoad segment thriving, but consumers themselves are behaving like royalty, splurging on the best cars after months of being unable to make a purchase.

While visits to car showrooms continue, there has been a substantial shift towards digital experiences. Car dealers and sales personnel are now equipped to serve these new kings and queens of the CaRoad market, which has assumed royal proportions.

The car servicing industry has also witnessed immense growth, as consumers prioritize regular maintenance to ensure their vehicles remain in top condition. Many car owners, having left their vehicles idle for months, now seek servicing and repairs to keep them roadworthy.

An interesting marketing drive by Exide is worth mentioning here. Recognizing that many vehicles had been left unused for months, leading to battery failures, Exide proactively reached out to residential societies where numerous cars were parked idle. These societies housed many residents who owned multiple cars, making them an ideal target for Exide’s initiative. Since many consumers faced difficulties in restarting their cars due to dead batteries, Exide sent its sales and service teams to assist them.

The teams visited various societies, providing on-the-spot jumpstart services to car owners struggling with battery issues. They engaged directly with consumers, explaining battery maintenance tips and offering on-site inspections. This strategic outreach paid off immensely, as consumers who benefited from this initiative preferred Exide whenever they needed to replace their car batteries. The initiative not only reinforced Exide’s brand presence but also strengthened consumer trust, resulting in increased brand preference and loyalty. Thus, the ‘CaRoad’ market was explored by the ‘interesting’ drive by Exide, which paid great dividends.

This campaign serves as a lesson for other marketers—whether in car sales, hospitality, travel, or car accessories—to explore opportunities within the rapidly growing CaRoad market, which has truly become the king.

While travel by air or train has declined significantly due to social distancing concerns and restrictions, the desire to travel among Indian consumers remains strong. As a result, Indian consumers have embraced the CaRoad market, fueling its rapid growth.

The travel, tourism, and hospitality industries have also actively participated in the CaRoad market, further enhancing its significance. Indians love to travel, and despite restrictions, their passion for exploration has only intensified. With minimal travel regulations in place—apart from sanitization, masks, and social distancing—the CaRoad market has become a vital enabler of domestic tourism.

Just as the Covid era accelerated digital transformation across industries, it also boosted domestic tourism and road travel. And, it is being encouraged and fully participated in by the Indian consumers. And, all this has made the ‘CaRoad’ market the king!

Marketers, what are you waiting for? Now is the time to build your brands and actively participate in the CaRoad market. Develop strategic marketing and brand initiatives tailored to this thriving sector. Whether you are in car sales, travel, hospitality, or car accessories, there is an immense opportunity to capitalize on the growing demand for personal vehicle travel.

And while celebrating the growth of this market, don’t forget to ‘have one for the road’!