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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 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.
Huge 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 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 greater than these of sedans.
OLX Autos India CEO Amit Kumar confirmed the demand for SUVs has additionally been going up. Nevertheless, given the growing numbers of first-time consumers within the used automotive phase, the desire for price range vehicles within the lower than `3 lakh bracket has witnessed a pointy uptick, Kumar mentioned.
Shashank Srivastava, senior government director, advertising & gross sales, Maruti Suzuki, informed 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 automotive 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 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 can be valued at $50 billion by FY25 from $25 billion in FY21.Pushan Sharma, director, Crisil Analysis, identified the smaller substitute cycle from 7-10 years to 4-7 years had pushed up demand for used vehicles. “There are extra choices right this moment and clients wish to improve however at the price of a brand new automotive 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 quicker 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 revenue ranges with clients preferring used vehicles to remain inside their budgets.
“India’s used automotive market is logging the next progress share than new vehicles. The lengthy ready interval for brand 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 recent vehicles is proscribed. Apart from, after Covid, folks now not want ride-sharing and public transportation,” he mentioned.
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