“The shut-down of offline car dealers and trade markets put a temporary pause on the car retailing industry during the lockdown period of COVID-19, since car retailing is an industry that heavily relies on the trade dealership model. The impact of COVID-19 has made both car brands and consumers more aware of the necessity and potential of online retailing.

Consumers show a strong interest in shifting part of the car purchasing process to online, especially given that car price and the price of aftersales services are often more transparent online. Often online systems also allow a more personalised ordering process with reassured car delivery services and this could become another trigger as well.

It is worth noting that the offline car dealer is still going to be the major initial route for consumers seeking price consulting or to test drive cars, and many consumers have developed a trust towards traditional in-person relationships. Therefore, the expertise of sales personnel is the key competitiveness offline dealers should strengthen to offer accurate information and make the buying process feel tailored to the individual.”

– Terence Zhou, Senior Research Analyst, 31 May 2020

This report examines the following areas:

The impact of COVID-19 on consumer behaviour and the car retailing market

How the market will reshape post-COVID-19

Consumers’ major initial car price consulting channels online and offline

Consumers’ acceptance of online car purchasing and preferences towards different platforms

How offline channels could do better to retain consumers against the growing threat of online