After clocking in robust volumes within the new-car market, SUVs (sports activities utility autos) are slowly gaining traction within the pre-owned automotive market. For Maruti Suzuki’s True Value, 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%.In 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 development final 12 months as affordability drove demand. For sedans, the expansion was two-fold, he added.
Big Boy Toyz founder and MD Jatin Ahuja mentioned the share of the SUV phase within the pre-owned automotive market will develop additional within the subsequent 5 years. The firm, which sells solely luxurious used automobiles, witnessed a development of virtually 16% in volumes in FY22, with the gross sales of SUVs being considerably greater than these of sedans.
OLX Autos India CEO Amit Kumar confirmed the demand for SUVs has additionally been going up. However, given the rising numbers of first-time patrons within the used automotive phase, the choice for funds automobiles within the lower than `3 lakh bracket has witnessed a pointy uptick, Kumar mentioned.
Shashank Srivastava, senior government director, advertising & gross sales, Maruti Suzuki, advised FE that sourcing used automobiles that had been pushed much less was a problem as a result of many homeowners postponed buying and selling their used automotive for a brand new one. “Nonetheless, the ticket price of used cars went up by 14%,” Srivastava mentioned.
Crisil estimates gross sales of pre-owned automotive gross sales at 4.2-4.4 million items in FY22, up from 3.8 million items in FY21. India’s pre-owned automotive 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 Research, identified the smaller alternative cycle from 7-10 years to 4-7 years had pushed up demand for used automobiles. “There are more options today and customers want to upgrade but at the cost of a new car in a low-segment,” Sharma defined. While demand for SUVs grew at 18% in FY18, it was round 20% in Fy21. “The frequent launches of UVs are leading faster replacements and more supply of used UVs,” Sharma mentioned.
Maruti’s Srivastava mentioned gross sales of used automobiles in FY22 had been predominately pushed by an elevated choice for private mobility. This was induced by Covid-19 security considerations and the affect on revenue ranges with prospects preferring used automobiles to remain inside their budgets.
“India’s used car market is logging a higher growth percentage than new cars. The long waiting period for new vehicles and a preference for personal mobility has seen many more people buying used cars,” Niraj Singh, founder and CEO, Spinny, mentioned.
Sandeep Aggarwal, founder & CEO, Droom, mentioned the corporate has seen a three-fold development in enterprise in the previous few months. “The chip shortage has meant that the supply of new cars is limited. Besides, after Covid, people no longer prefer ride-sharing and public transportation,” he mentioned.
Source: www.financialexpress.com”