72% of new car buyers find brands through Meta platforms, says Meta-FADA report, ET Auto

Additionally, the report underscored the rising impact of AI-powered advertising tools, showcasing how these advancements are driving higher engagement and improved lead generation for dealerships.Meta and the Federation of Automobile Dealers Associations (FADA) released a joint whitepaper and playbook today. These resources highlight the digital transformation of consumer behavior in the Indian automotive market. The partnership aims to empower auto dealers with digital tools and strategies through the ‘Move with Meta’ program.

Meta and FADA launched the ‘Move with Meta’ program in 2023 to upskill auto dealers in India on digital platforms. The program aimed to train 3,000 dealers initially, but it has exceeded expectations.

Meta helps car buyers discover their preferred brands – Key highlights

The report highlighted that 72% of new car buyers discovered their preferred brands through Meta’s platforms. Additionally, 69% acknowledged that these platforms influenced their purchase decisions. Notably, WhatsApp has emerged as a key communication channel, with 48% of buyers using it to check vehicle availability.

The survey also revealed that Instagram Reels is gaining traction as a key platform for automotive research, with 72% of buyers finding creator content valuable for evaluating vehicles. It also highlighted a growing trend of automotive brands utilizing these digital platforms for marketing and communication.

Additionally, the report underscored the rising impact of AI-powered advertising tools, showcasing how these advancements are driving higher engagement and improved lead generation for dealerships.

The program has successfully trained over 6,000 dealers since its launch. This is double the initial target. Adding the 3,000 dealers upskilled before the program began, the total reaches 10,000. The program has also tripled dealer digitisation and improved lead generation efficiency by 32%.

“At FADA, our vision is to empower dealers nationwide with the right digital tools and insights to stay ahead in a rapidly evolving market. Through our partnership with Meta, we’ve not only exceeded our commitment of upskilling 3,000 dealers—surpassing 6,000—but we’ve also seen a 3X increase in digitisation and a marked 32% improvement in lead generation efficiency. This whitepaper underscores the potential of AI, 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, Federation of Automobile Dealers Associations (FADA).

A plan to diversify dealer base

The program has positively impacted sales for participating automakers. Meta and FADA plan to expand the program to train an additional 5,000 dealers in the next two years. FADA currently represents 15,000 auto dealers across India.

The whitepaper and playbook developed by Meta and FADA offer insights into evolving consumer preferences in the automotive sector. Digital adoption is significantly influencing purchasing decisions. The findings aim to help automakers and dealerships in India adapt to these changes.

Move with Meta program

The ‘Move with Meta’ program focuses on equipping dealers with the skills to utilise Meta’s platforms for customer outreach and lead generation. The training covers various aspects of digital marketing, including building a social media presence.

The success of the ‘Move with Meta’ program is evident in the significant increase in dealer digitisation and lead generation efficiency. The program has also contributed to improved sales for major auto manufacturers in India.

Several automakers have reported positive sales results from the program. They have seen improvements in lead generation and sales conversions. These companies have actively integrated Meta’s platforms into their marketing strategies.

“Our platforms and products are well positioned to enable rapid and efficient digital customer acquisition and engagement for auto dealers in a hyperlocal manner. Over the last two years we’ve upskilled nearly 10,000 dealers along with FADA to digitise their outreach and experiences through our unique hyperlocal solutions and key products ranging from Reels and AI to messaging. 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. This program has not only benefitted thousands of auto dealers but also proven to drive strong sales results for leading OEMs,” stated Saugato Bhowmik, Director, Auto, CPG, and D2C for Meta in India.

Auto OEMs utilising the technology

Hyundai, for example, saw a 37% sales growth in the second half of 2024 compared to the first half. They also reduced their cost per retail by 29%. Mahindra utilised various Meta platforms, including WhatsApp, for vehicle launches and marketing campaigns.

“We’re excited to see outstanding business results through our partnership with Meta and OnlineSales on the Hyperlocal program. Together, we’ve developed a custom model that efficiently onboarded over 600 dealers in record time. In H2 ’24, Meta’s hyperlocal program drove a remarkable 37% growth in sales compared to H1, while delivering 29% reduction in Cost per Retail. As we move forward, we’re eager to scale this partnership further, leveraging cutting-edge AI and messaging solutions to unlock even greater opportunities,” mentioned Virat Khullar, Group Head, Marketing, Hyundai Motor India Limited.

“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. Some of the key activations include leveraging WhatsApp for Thar ROXX launch, using Partnership ads for driving consideration for XUV 700 (Intent went up +3.3 pts) and the Auto Industry’s first chat-based car configurator on Messenger and Instagram Direct for XUV 3XO, which saw 29% increase in conversation volumes. Our collaboration with Meta has driven significant impact, leading to bookings and sales, and setting new benchmarks in the industry,” said Manjari Upadhye, Chief Marketing Officer, Auto, Mahindra and Mahindra Limited.

What does it indicate?

The collaboration between Meta and FADA reflects the growing importance of digital strategies in the automotive industry. The focus is on providing dealers with the tools and knowledge to effectively reach and engage with customers online. The continued expansion of the ‘Move with Meta’ program demonstrates the commitment of both organisations to driving digital transformation in the sector.

• Published On Jan 21, 2025 at 05:40 PM IST

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