After clocking in sturdy volumes within the new-car market, SUVs (sports activities utility autos) are slowly gaining traction within the pre-owned automobile market. For Maruti Suzuki’s True Worth, the share of SUVs elevated marginally from 5-6% over the previous 12 months, whereas for Cars24 the share rose from 10% to17%, and for Spinny it elevated from 21 to 29%.Within the new-car market, SUVs’ share is near 38%, whereas for hatchbacks it’s 40%.Kunal Mundra, CEO, Cars24, mentioned the SUV section within the used-car market reported a five-fold progress final 12 months as affordability drove demand. For sedans, the expansion was two-fold, he added.
Huge Boy Toyz founder and MD Jatin Ahuja mentioned the share of the SUV section within the pre-owned automobile market will develop additional within the subsequent 5 years. The corporate, which sells solely luxurious used vehicles, witnessed a progress of virtually 16% in volumes in FY22, with the gross sales of SUVs being considerably increased than these of sedans.
OLX Autos India CEO Amit Kumar confirmed the demand for SUVs has additionally been going up. Nonetheless, given the growing numbers of first-time patrons within the used automobile section, the desire for finances vehicles within the lower than `3 lakh bracket has witnessed a pointy uptick, Kumar mentioned.
Shashank Srivastava, senior govt director, advertising and marketing & gross sales, Maruti Suzuki, instructed FE that sourcing used vehicles that had been pushed much less was a problem as a result of many homeowners postponed buying and selling their used automobile for a brand new one. “Nonetheless, the ticket value of used vehicles went up by 14%,” Srivastava mentioned.
Crisil estimates gross sales of pre-owned automobile gross sales at 4.2-4.4 million items in FY22, up from 3.8 million items in FY21. India’s pre-owned automobile market ought to cross 7 million autos by FY26, a research by Crisil and OLX Autos mentioned. CARS24 estimates the market will probably be valued at $50 billion by FY25 from $25 billion in FY21.Pushan Sharma, director, Crisil Analysis, identified the smaller alternative cycle from 7-10 years to 4-7 years had pushed up demand for used vehicles. “There are extra choices immediately and clients need to improve however at the price of a brand new automobile in a low-segment,” Sharma defined. Whereas demand for SUVs grew at 18% in FY18, it was round 20% in Fy21. “The frequent launches of UVs are main sooner replacements and extra provide of used UVs,” Sharma mentioned.
Maruti’s Srivastava mentioned gross sales of used vehicles in FY22 had been predominately pushed by an elevated desire for private mobility. This was induced by Covid-19 security considerations and the impression on earnings ranges with clients preferring used vehicles to remain inside their budgets.
“India’s used automobile market is logging a better progress share than new vehicles. The lengthy ready interval for brand spanking new autos and a desire for private mobility has seen many extra folks shopping for used vehicles,” Niraj Singh, founder and CEO, Spinny, mentioned.
Sandeep Aggarwal, founder & CEO, Droom, mentioned the corporate has seen a three-fold progress in enterprise in the previous few months. “The chip scarcity has meant that the availability of latest vehicles is restricted. In addition to, after Covid, folks not favor ride-sharing and public transportation,” he mentioned.
