- Scorpio, Fortuner and other SUVs are among the most popular used cars that Indians buy, says the CEO of OLX Autos.
- However, demand for small cars such as the Swift, i10 and WagonR remains strong.
- The used car market is growing faster (15%) than the new car market (10%).
Indian customers are showing greater preference for buying used cars as higher input costs and inflationary pressures make buying a new car an expensive proposition.Scorpio, Fortuner and other SUVs are among the most popular choices for Indians, with demand for these pre-owned vehicles rising more than 150% in 2021 from 2019 levels, Amit Kumar, CEO of OLX Autos, told Business Insider India in an interview. Character.
Small cars such as the Swift, i10 and WagonR continued to dominate used car sales – their share increased to 45-55% of the total pie in 2021 from 40-50% in 2019. In the Western Region, hatchbacks made up as much as 60% of total sales in 2021, he said.
Kumar said the improvement in demand was most noticeable in the south followed by the west, while it was relatively less in the east even after the lockdown. Interestingly enough, the concept of buying used cars is now gaining traction in Tier 2 and 3 cities as well.
“The Covid-19 pandemic has increased the demand for used cars, and so we have seen an increase in prices also for these used cars,” Kumar added.
The used car market is growing faster (15%) than the new car market (10%) in terms of compound annual growth rate. The used car market is expected to be 1.5 times larger than the new car market by fiscal year 26, according to a study by OLX Autos and CRISIL.
A report by Car24 also highlighted that millennials and Genzos were the largest used car buyers, posting 71% and 57% growth, respectively, in 2022 compared to the previous year.
Used luxury cars are in demand in Tier 2 and 3 cities
“We have seen an amazing growth in demand for luxury cars in Tier 2 cities, compared to Tier 1 cities. Demand growth in Tier 2 cities was 45% in 2021, while it was 40% in Tier 1 cities,” Kumar said.
He also explained that this is mainly because the luxury car market in Tier 2 cities has benefited from a lower base compared to Tier 1 cities.
The company also published a report on used luxury cars after analyzing more than 50,000 luxury car listings on the platform in the January-June period.
In the report, OLX Autos indicated that the demand for used luxury cars witnessed a sharp increase in the first half of 2022, with BMW ranked first, followed by Mercedes-Benz, Audi, Jaguar and Porsche.
OLX isn’t the only one taking advantage of this trend. Its rival Spinny also saw high demand for Mercedes C class, BMW 3 series and Audi Q3 cars on the newly launched luxury car portal in the second quarter of 2022.
In the age of WFH, interpersonal skills like public speaking and persuasion are no longer so necessary after all
Sporting goods, furniture and footwear are driving retail growth in India this festive season: RAI