Digital Tools Reshaping Auto Retail: Report 72 % of new automotive buyers discovering brands on Meta platforms and a similar percentage finding value in creator content on Instagram Reels for vehicle evaluation
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The automotive industry in India is witnessing a significant transformation as digital platforms like AI, Instagram Reels, and WhatsApp become essential tools for engaging with consumers. A joint report by Meta and the Federation of Automobile Dealers Associations (FADA) highlights how these technologies are influencing buyer behavior, with 72 per cent of new automotive buyers discovering brands on Meta platforms and a similar percentage finding value in creator content on Instagram Reels for vehicle evaluation. This shift underscores the growing importance of digital tools.
The report is part of the Move with Meta initiative, launched in 2023 to address the need for digital upskilling in the automotive retail sector in India. Initially aimed at training 3,000 dealerships, the program has exceeded expectations, upskilling more than 6,000 dealerships in two years and bringing the total number of digitally trained dealerships to 10,000. This has led to a threefold increase in dealership digitization and a 32 per cent improvement in lead generation efficiency, according to the findings.
C. S. Vigneshwar, President of FADA, explained the motivation behind the initiative: "At FADA, our vision is to empower dealers nationwide with the right digital tools and insights to stay ahead in a rapidly evolving market," Vigneshwar emphasised.
Automakers have also reported tangible benefits from the program.
Hyundai Motor India, for instance, saw a 37 per cent increase in sales during the second half of 2024 compared to the first half, alongside a 29 per cent reduction in cost per retail, according to Virat Khullar, Group Head of Marketing. Similarly, Mahindra & Mahindra leveraged digital tools for launches, with campaigns on WhatsApp and other platforms boosting conversations and driving bookings.
While the initiative has shown success in bridging the digital gap for dealerships, challenges remain in ensuring that smaller and rural dealerships can fully adopt these technologies.
"We're thrilled to deepen our partnership with FADA and take on the ambitious target of upskilling 5000 more dealers in the next 2 years," said Saugato Bhowmik, Director, Auto, CPG, and D2C for Meta in India
