Business - India;Consumers considering fewer cars before purchase

New Delhi (PTI) : In what should ring the alarm bells for car-makers already facing a sales downturn, Indian customers are considering fewer models before making purchase decisions, global marketing information services firm JD Power said in a study.

"Twenty seven per cent of new vehicle buyers in India in 2008 considered at least one other model before purchasing their vehicle, compared with 38 per cent in 2007. This marks the first significant decline in cross-shopping rates since 2005," pointed out the study.

The study compared shopping behaviour of two groups of customers -- buyers of recently launched models and buyers of models that have been on the market for more than two years.

For a fourth consecutive year, Maruti Suzuki India performed well in persuading shoppers to purchase the brand, with 38 per cent of all shoppers eventually purchasing one of its models.

Among other vehicle makes included in the study, buyers of Mahindra-Renault and Hyundai tend to shop around the most before purchasing their vehicles, while Skoda and Mahindra buyers were least likely to consider another model in their shopping process, the study added.

"The introduction of several new models into the market during the past few years as well as increased advertising by manufacturers is likely to create greater dissonance in the minds of shoppers and cause them to turn to friends or relatives for reliable advice," JD Power and Associates Senior Director Mohit Arora said.

As a result, consumers were being more decisive during initial stages of the purchase process and fewer car buyers were considering multiple models, he added.