There is a lockdown on every side due to Corona epidemic. In such a situation, public transport is also closed at the moment, while some people want to travel in their own car due to this virus.
Second Hand Car
Second hand car sales in India have increased tremendously in the last few years. As stated in a report by Statista, the size of the car market in India was more than 4.4 million units in FY 2020, which was higher than the size of the new car market during that period. Second-hand car sales in India increased by almost 50% in December 2020 compared to the same month in 2019.
According to another study conducted by the Indian Blue Book, India’s second-hand car market stood at 4.2 million units in FY20. At the same time, it has been claimed that in the same financial year, car sales have increased by 5% YoY, while new car sales are down by 17.8% due to pre-pandemic economic crisis. Second-hand car sales were actually 50% higher than sales of new cars recorded at 2.8 million units.
Sales fell due to lockdown
In FY2021, however, business momentum slowed for both new and second-hand car sales and only 3.9 million units of second-hand cars were sold in the last financial year. However, the used car sales saw an increase again as the lockdown was removed from the country at one time and all the customers who were thinking of taking the car during that time had bought the car. In such a situation, this segment is expected to grow even more in the coming years.
People have more confidence in second hand trains
There is a lockdown on every side due to Corona epidemic. In such a situation, public transport is also closed at the moment, while some people want to travel in their own car due to this virus. In such a situation, the demand for second hand car has started increasing. This demand has started to increase significantly among those who are not currently on permanent jobs and do private jobs. At the same time, people are getting less salary in this situation, then there is also tension of going to the job. In such a situation, no one is taking the risk of taking a new car by taking a loan.
People have more faith in the vehicles of these companies
Please tell that during this time people are the most Maruti Suzuki, Mahindra and Mahindra. Tata Motors is relying on Toyota’s vehicles. That is, any second-hand car wants to buy from these companies. In such a situation, there are many companies online which are seeing a significant increase in their business.
According to Avik Chattopadhyay, former marketing head, product planning and PRO at Volkswagen India, with white-collar employees getting into work from home mode, many sold their other vehicles, sufficient to supply used cars in the market Has gone. He also said that the initial growth in used car sales occurred in the first quarter of FY 2021, as the public transportation system collapsed due to the lockdown and people were looking for affordable means.
However, as the quarters moved forward and activity resumed, the used car market did not bounce back as before, largely due to sluggish demand. But now the second hand car market is booming once again, seeing the new wave of Corona.
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