by Hitesh Gupta, Co-founder and CTO, Park+*
September 23, 2023: India's automotive e-commerce industry has given us a ringside view of the evolution and adoption of new-age technologies over the years, leaving us more optimistic than ever before about the role of artificial intelligence (AI) and machine learning (ML), big data analytics etc. in securing and advancing the cause of this critically important sector of the economy.
The onset of AI, ML and big data has sparked a technological revolution with profound implications across the economic spectrum because it offers numerous opportunities to complement and supplement human intelligence to enhance the works of the people. India, as one of the world's fastest-growing large economies of the world, is embracing this wave of change by harnessing these innovative technologies to reshape its commercial landscape, particularly in automotive e-commerce, with great benefits.
Revolutionizing Online Automobile Sales
AI and ML have emerged as transformative forces within the automotive e-commerce market, revolutionizing the entire back-end programming such as decision-making processes, reducing operational costs, and enhancing the customer experience. The sophisticated analysis of big data by ML algorithms now enables the prediction of sales patterns, personalised vehicle recommendations to online consumers, and optimisation of supply chain management, thereby changing the entire landscape of after-sales services in the country. Digitally transformed businesses helped further by the incorporation of AI, have therefore not only improved product offerings but also service delivery to the satisfaction of the most demanding consumers.
AI and ML's Pivotal Role in Post-Purchase Support
With the aid of AI and the Internet of Things (IoT), we can swiftly identify vehicle faults and schedule routine maintenance, culminating in a more satisfying experience for our valued customers. Customers too have come to expect availability and dedicated service from the organization’s customer support team 24/7. Adding to the allure, AI-driven chatbots have improved the customer service landscape by providing prompt responses to inquiries around the clock, eliminating the need for round-the-clock manpower. A robust and seamless supply chain management is also critical for ensuring an organisation’s competitive and strategic edge. AI technology has automated and facilitated inventory management by using details of the customers, drivers, and vehicles to create the most optimal routes and ensure efficient processes to make timely deliveries. The cherry on the cake is that AI-driven chatbots have enhanced the customer service experience by making it possible for customers to get answers to their queries at any time, day, or night, without having to deploy manpower round the clock.
The AI market is also witnessing unprecedented growth. The Global Automotive Artificial Intelligence market, which reached $ 2.2 billion in 2023, is expected to touch $ 14.3 billion by 2030, growing at a compounded annual growth rate (CAGR of 26.4%.   (1). According to the principal scientific advisor (PSA) to the Government of India, the expenditure of AI in
India is estimated to surge at a CAGR of 39% between 2019-25 to reach US$ 11,781 million by 2025. (2) Similarly, the National Institute for Transforming India (NITI) Aayog, the government’s think tank, stated in 2018, that AI has the potential to add $957 billion or 15% of the current gross value to the country in 2035. This growth will be fuelled by a host of factors, including the rising demand for autonomous vehicles, and its application in AI in traffic management and aided by many progressive government policies and other initiatives.
Fostering Trust through Transparency
Consumer trust in the online auto market is at an all-time high. By leveraging AI and ML, companies can foster greater transparency with their customers across the value chain, thereby boosting brand loyalty. The AI-driven India's automotive e-commerce market will define the present and the future because it will help identify prospective customers, answer online queries, and conversations via chatbot, and re-target potential customers.
The advancement of these technologies will be instrumental in propelling India's automobile e-commerce market to greater heights. Thanks to its vast talent pool, supportive government policies, and expanding digital infrastructure, India is uniquely positioned to become a global leader in AI innovation.
The Way Forward
Yet, such growth will not come easy. Efforts towards cultivating an AI-ready workforce, fostering robust partnerships between industry and academia, and a steadfast commitment to ethical AI utilization are all prerequisites to fully harness the potential of AI and ML. As we tread further along this transformative path, collaborative efforts are essential to ensure that the technological revolution catalysed by AI and ML remains sustainable, productive, and accessible to all.
The Indian auto e-commerce industry stands on the cusp of an inflexion point and has the potential to touch unprecedented highs, thanks to the advent of AI and ML. With great excitement, I embark on this new chapter we are about to enter. Let us wholeheartedly embrace this shift and gracefully usher in a future where technology truly benefits people from all walks of life.
*Park+ is a comprehensive platform established in 2019, offering an array of solutions for car owners including parking, FASTag management, car insurance, automated vehicle access, and EV charging.