Sales boost for auto dealers as deal with Meta helps digitisation: Report

Consumers consider social media for decision to buy new vehicle and use messaging apps to communicate with auto dealers

As many as 72 per cent of Indians planning to buy a vehicle look at social media rather than traditional channels, according to a whitepaper prepared by Meta and the Federation of Automobile Dealers Associations (FADA).

 

As many as 48 per cent of new vehicle buyers use messaging applications for communicating with dealers, marking how such purchases are shaped by technology and original equipment manufacturers (OEMs) and dealers embracing digitisation.

 

Digitisation through Meta platforms -- Facebook, Instagram and WhatsApp -- resulted in a 32 per cent improvement in customer lead generation efficiency for dealers and a similar rate of decline in cost per lead. The gradual shift happened after Meta partnered with FADA in January 2023 for an initiative that enables automobile dealers across India to reach consumers digitally. As many as 10,000 out of 15,000 FADA dealers are part of the initiative called ‘Move with Meta’, with plans to add the remaining 5,000 too in the next two years. The initiative has led to three-fold growth in dealer digitisation, according to data.

 

Meta’s hyper local initiative helped Hyundai Motor India to achieve 37 per cent growth in sales in the second half of 2024, compared to the first, while delivering a 29 per cent reduction in cost per retail. Similarly, digital initiatives by MG Motor India led to a 40 per cent increase in qualified customer leads.

 

“We at Meta are seeing specific auto consumer insights. Nearly 72 per cent of the consumers depend on social media and 69 per cent of them use Meta and its social media platforms. Within that, around 48 per cent of the customers message either an OEM or dealership during the pre-purchase and post-purchase cycle. Also, what was important is that 72 per cent of people depend on creators in their evaluation of auto models,” said Saugato Bhowmik, director – auto, consumer packaged goods (CPG), and D2C vertical for Meta in India.

 

India has the world's largest influencer community and more than 4,000 businesses in the country use influencer advertisements on Meta platforms. The country tops the chart in creating Reels, short videos that users can create and share on Instagram and Facebook. 

 

“At FADA, our vision is to empower dealers nationwide with the right digital tools and insights to stay ahead in a rapidly evolving market. This whitepaper underscores the potential of AI [artificial intelligence], Reels, and messaging platforms such as WhatsApp to strengthen customer relationships and drive growth. We look forward to scaling this collaboration further, bridging the digital gap in automotive retail, ensuring that dealers across India are future-ready, and remain agile in these dynamic times,” said C S Vigneshwar, president, FADA.

 

Virat Khullar, group head for marketing at Hyundai Motor India, said: “We’re excited to see outstanding business results through our partnership with Meta on the hyper local programme. Together, we’ve developed a custom model that efficiently boarded over 600 dealers in record time. As we move forward, we’re eager to scale this partnership further, leveraging cutting-edge AI and messaging solutions to unlock even greater opportunities.”

 

Consumers, when they are considering a vehicle, seek to engage with the brand, while at the point of purchase they prefer to connect directly with the dealer, according to the whitepaper. Around 81 per cent visited the social media profile of a dealer while purchasing an automobile. Most visited a dealer's Facebook page to understand the experience they can expect. Meta's Hyperlocal Marketing Model helped dealers discover new local buyers and grow sales.

 

Manjari Upadhye, chief marketing officer for auto at Mahindra and Mahindra, said: “Our partnership with Meta has helped amplify the impact of our passenger vehicle launches. Mahindra has leveraged the best and latest in technology to drive launch impact through Meta’s family of apps. Our collaboration with Meta has driven significant impact, leading to bookings and sales, and setting new benchmarks in the industry.”