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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 yr, 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 phase within the used-car market reported a five-fold progress final yr as affordability drove demand. For sedans, the expansion was two-fold, he added.
Massive Boy Toyz founder and MD Jatin Ahuja mentioned the share of the SUV phase 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 just about 16% in volumes in FY22, with the gross sales of SUVs being considerably larger than these of sedans.
OLX Autos India CEO Amit Kumar confirmed the demand for SUVs has additionally been going up. Nonetheless, given the rising numbers of first-time consumers within the used automobile phase, 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 & gross sales, Maruti Suzuki, instructed FE that sourcing used vehicles that had been pushed much less was a problem as a result of many house owners postponed buying and selling their used automobile for a brand new one. “Nonetheless, the ticket worth 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 examine by Crisil and OLX Autos mentioned. CARS24 estimates the market shall 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 right now 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 have been predominately pushed by an elevated desire for private mobility. This was induced by Covid-19 security issues and the impression on revenue 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 couple of months. “The chip scarcity has meant that the provision of recent vehicles is restricted. Apart from, after Covid, folks now not want ride-sharing and public transportation,” he mentioned.
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